EU Wheat Close

Posted by Nogger - a legend in his own mind at 07:37 | Categorized as

13/09/11 -- Nov London wheat closed GBP2.15/tonne lower at GBP165.25/tonne with Jan down GBP2.05/tonne at GBP166.85/tonne. Nov Paris wheat fell EUR5.00/tonne to EUR203.00/tonne with Jan declining EUR4.75/tonne to EUR203.50/tonne.

Customs data shows UK exports fell sharply in July compared with the same month in 2010, with wheat shipments down by 58%, barley exports falling 69% and foreign rapeseed sales down 25%.

Meanwhile domestic demand also remains slack with buying interest from the feed sector sluggish and rapeseed crushers across the EU reportedly more interested in selling seed than buying it due to poor margins.

Risk aversion is still a factor with European debt still high on everybody's worry list.

The market also still seems to be suffering a bit of a hangover from Monday's USDA reports which raised world wheat production by 6 MMT, but consumption by only 2 MMT in 2010/11, upping ending stocks to 194.6 MMT.

Those numbers included a 2.3 MMT increase in wheat output for the EU-27. Whilst there may be quality issues once again surrounding the German crop, volume there was seen benefitting from summer rains and increased by 800,000 MT.