EU Wheat Declines On Hangover From USDA Data
10/02/12 -- EU grains finished lower with front month Mar 12 London wheat falling GBP2.25/tonne to GBP165.00/tonne and Mar 12 Paris wheat down EUR2.50/tonne to EUR210.50/tonne.The hangover from yesterday's bearish USDA data continues.
On the week as a whole London wheat was down GBP2.45/tonne and Paris wheat fell EUR6.75/tonne. At the end of the day, these are still very impressive prices considering that we have the largest projected wheat ending stocks that the world has ever known.
Also the constant nagging pain that is Greece means that the threat of a disorderly default simply refuses to go away. Five cabinet ministers there resigned today shortly after finance ministers in fellow Eurozone countries dismissed their austerity deal as incomplete.
Greece also still needs to agree a deal with private creditors to take a haircut before it can secure the next round of bail-out funds.
Late breaking news Friday was that S&P downgraded no less than 34 Italian banks. It would seem that the European debt crisis is getting worse not better.
There are also now concerns emerging that export dependant China's economic growth simply cannot continue at recent rates given the seemingly impending demise of Europe.
Ukraine said that it's marketing year-to-date grain exports are up 63% on last season at 11.76 MMT, of which 6.75 MMT is corn, 2.96 MMT wheat and 1.90 MMT barley.
Brussels issued 247 TMT of soft wheat export licences this past week, it says it all that this fairly modest amount is the best total in nine weeks.
