EU Wheat Closing Comments

Nov London wheat closed GBP3.25 lower at GBP163.00/tonne, with Nov Paris wheat down EUR4.50 at EUR223.25/tonne.

Wheat both sides of the Channel declined on ideas that dollar weakness will boost exports of US material.

Brussels issued soft wheat export licences for 527,000 MT this week, bringing the year to date total to 5.3 MMT, more than a million tonnes ahead of the same time last year.

Wheat imports to date are less than half of last season at 410,000 MT.

The IGC left their world wheat production estimate unchanged from last month at 644 MMT, carryover stocks were reduced 1 MMT to a still more than ample 183 MMT.

"Given the generally adequate supply situation for wheat and other grains, despite recent crop concerns, many have expressed surprise at the ferocity of recent market responses," they noted.

Meanwhile rain has started to arrive in the Volga region of Russia which may boost winter plantings a little, although they will likely fall well short of the government's 18 million hectare target.