EU Wheat Close

Posted by Nogger - a legend in his own mind at 07:14 | Categorized as

03/11/10 -- EU wheat futures closed lower on dollar weakness after US President Obama's Democrats took a pasting in the US mid term elections.

Nov10 London wheat closed down GBP2.40 at GBP167.50/tonne and Nov11 London wheat down GBP0.75 to GBP144.50/tonne. Nov10 Paris wheat closed EUR0.50 lower at EUR218.50/tonne and Nov11 Paris wheat was down EUR0.25 to EUR194.25/tonne.

It was a quiet session, with the market a little subdued by France's failure to win a larger slice of Egypt's latest wheat tender this week.

Argentine wheat was priced USD21.50/tonne cheaper than French wheat, affording it the lion's share of the tender despite a significant freight disadvantage.

The French Ministry said that the nation produced 35.7 MMT of soft wheat this year compared to 36.4 MMT in 2009. Barley output was 10.1 MMT and corn production 13.6 MMT, they added.

Russian winter grain plantings are around 17% down on where they were last year, with little time for further expansion as winter closes in. Spring sowings are expected to at least partially compensate, if they can find sufficient quantities of seed.

European wheat generally looks pretty good heading into winter dormancy.