EU Wheat Close

Posted by Nogger - a legend in his own mind at 22:11 | Categorized as

10/11/10 -- Nov10 London wheat ended down GBP4.25 at GBP168.50/tonne, and Nov10 Paris wheat fell EUR4.75 to EUR223.75/tonne.

There was a disappointing lack of follow through for wheat bulls today, albeit from the highest levels for 2 1/2 years in the case of London wheat's close last night.

Egypt bought some French wheat in a tender today, but the order was spread around, with US and Australian wheat also getting a look in.

The recent weakness of the dollar, and strong euro, appears to be capping EU wheat's competitiveness.

Brussels will report tomorrow on EU soft wheat export licence issues. They have dropped off quite sharply in recent weeks, I expect that trend to continue in the second half of the 2010/11 marketing year.

The French Ministry say that commercial wheat stocks amounted to 13.6 MMT as of Oct 1st, compared to 13.0 MMT a year ago.