EU Wheat Ends Mixed Tuesday

EU wheat futures closed mixed Tuesday with Paris November milling wheat closing up EUR1.50 at EUR155.50/tonne, and London November feed wheat ending down GBP0.75 at GBP126.00/tonne.

Firmer outside markets helped stem the flow of recent losses. A strong pound was negative for UK wheat, but helpful for grains on the continent however.

Generally the market remains in a sideways mode, farmers are reluctant sellers with large premiums still to be made for new crop positions.

Consumers are reticent buyers though, concerned over the magnitude of demand for compound feed, especially in the light of the plight of the dairy sector.

Dryness in Eastern Europe is still a threat to wheat production in those areas, and there is still a question mark over exactly how low US output will be this year.

In Argentina, planting prospects are dismal, Informa this week lowered their production estimate to 9.9 MMT, but with plantings expected 30% lower than a year ago (when production was only 8.3 MMT) there is still plenty of room for a much more sizable downwards revision yet.