EU Wheat Futures Fall Sharply Wednesday

EU wheat futures prices fell sharply Wednesday following some bearish stocks estimates from the USDA, and a sharply weaker dollar.

The USDA raised US 2009/10 ending stocks to 647 million bushels, from 637 million last month, and well ahead of the average trade guess of a fall to 606 million.

Global wheat stocks are also projected to rise for the coming season to 182.65 MMT, from 158.1 MMT in 2008/09 the USDA said, although these figures are in direct contrast to estimates from the IGC which sees stocks declining by 15 MMT in 2009/10.

Paris November milling wheat closed down EUR4 at EUR151.50/tonne, and London November feed wheat ended down GBP3.25 at GBP122.75/tonne.

FranceAgriMer, a newly formed French government body incorporating the likes of ONIGC, said that French soft wheat ending stocks will decline to 3.2 MMT from the 3.9 MMT forecast last month as exports have been above expectations.

A sharply weaker dollar added to the woes of EU wheat today, with the pound rising to $1.6350 and the euro to $1.3980 as investors back away from the US unit in search of higher-yielding assets.