EU Wheat Ends Lower
EU wheat futures continued to mimic Chicago wheat, closing lower Friday with November London feed wheat ending down GBP0.75 at GBP102.00/tonne and Paris November milling wheat EUR3.00 lower at EUR126.75/tonne.
There was very little fresh activity or impetus today, front-month November London wheat didn't trade at all during the entire session. Sellers remain reluctant and so too are buyers. The trade remains in a state of flux.
Huge uncertainties surround next season's production out of the likes of Ukraine and the US. Whist popular opinion continues to suggest that any rally in wheat is a selling opportunity, EU farmers don't quite seem to see it that way.
So we have a classic stand-off situation developing.
There seem to be potential problems developing in India, the world's second largest producer and consumer of wheat. A summer drought has led to sharply lower rice production, which it seems may well lead to an increase in wheat consumption on 2009/10.
In the UK we will have an increase in domestic consumption once the Ensus plant at Teesside comes on stream at the end of the year. Abengoa are also due to open a similar sized plant in Rotterdam shortly. Vivergo are expected to open another 1MMT+ wheat facility near Hull in summer 2010.
There was very little fresh activity or impetus today, front-month November London wheat didn't trade at all during the entire session. Sellers remain reluctant and so too are buyers. The trade remains in a state of flux.
Huge uncertainties surround next season's production out of the likes of Ukraine and the US. Whist popular opinion continues to suggest that any rally in wheat is a selling opportunity, EU farmers don't quite seem to see it that way.
So we have a classic stand-off situation developing.
There seem to be potential problems developing in India, the world's second largest producer and consumer of wheat. A summer drought has led to sharply lower rice production, which it seems may well lead to an increase in wheat consumption on 2009/10.
In the UK we will have an increase in domestic consumption once the Ensus plant at Teesside comes on stream at the end of the year. Abengoa are also due to open a similar sized plant in Rotterdam shortly. Vivergo are expected to open another 1MMT+ wheat facility near Hull in summer 2010.