EU Wheat Ends Sharply Lower Monday

EU wheat futures closed sharply lower Monday in quiet trade. With little fundamental fresh news to go on, the market was largely influenced by outside factors such as falling equities and crude oil.

Paris November milling wheat closed down EUR3.75 at EUR154.00/tonne, and London November feed wheat ended down GBP3.50 at GBP126.75/tonne.

Large premiums for new crop over old crop months are continuing to discourage farmers from selling, even though export interest is scant.

Crop production and stocks estimates from the USDA on Wednesday may provide the market with some direction, but until then we are treading water.

EU weather has improved recently, with a bit more moisture around for some wheat crops that were suffering from drought. However traders are cautious about getting too carried away with yield prospects, particularly in Eastern Europe, where a combination of planting home-grown seed in soggy soils, lack of spring moisture and reduced inputs seems likely to see output cut quite sharply.

a stronger dollar, strangely, seemed to have little impact on EU wheat today, which was lower from the off.

US wheat futures were down in the overnight and CBOT markets as traders bank profits ahead of Wednesday's USDA report.