EU Wheat Closing Comments
EU wheat futures closed a tad higher with March Paris milling wheat ending up EUR1.25 at EUR150.00/tonne and May London feed wheat closing up GBP0.90 at GBP118.40/tonne.
UK wheat put in an impressive performance to trade higher throughout the session considering the pound pushed through $1.48 against the dollar and 1.15 versus the euro.
Once again, this market is all about currency. Given the size of the UK's exportable surplus, it seems to me that the only way old-crop prices can push higher is on the back of a weak sterling. A not entirely unimaginable scenario certainly!
Egypt may be back in the market for wheat next week, according to media reports. If so French wheat may again get the nod, which may provide a bit of support.
Argentine soy & corn crop concerns have been eased slightly by decent rains throughout the past week. The USDA is out with a revised WASDE report on Tuesday, they may drop Argy wheat production from last months estimate of 10.5mmt to around 9mmt. If so that would be a reduction of nearly 44% on last year.
Drought problems also exist in China's wheat growing areas, with around 40% of the crop said to be affected. "Affected" of course doesn't mean lost or at risk of being lost. The government there have stated very publicly that they will fund large-scale irrigation programmes to ensure that crop losses aren't too severe.
UK wheat put in an impressive performance to trade higher throughout the session considering the pound pushed through $1.48 against the dollar and 1.15 versus the euro.
Once again, this market is all about currency. Given the size of the UK's exportable surplus, it seems to me that the only way old-crop prices can push higher is on the back of a weak sterling. A not entirely unimaginable scenario certainly!
Egypt may be back in the market for wheat next week, according to media reports. If so French wheat may again get the nod, which may provide a bit of support.
Argentine soy & corn crop concerns have been eased slightly by decent rains throughout the past week. The USDA is out with a revised WASDE report on Tuesday, they may drop Argy wheat production from last months estimate of 10.5mmt to around 9mmt. If so that would be a reduction of nearly 44% on last year.
Drought problems also exist in China's wheat growing areas, with around 40% of the crop said to be affected. "Affected" of course doesn't mean lost or at risk of being lost. The government there have stated very publicly that they will fund large-scale irrigation programmes to ensure that crop losses aren't too severe.