EU Wheat Closing Comments

EU wheat futures closed mixed with London feed wheat ending generally down GBP0.35/tonne to GBP0.35/tonne higher. Paris wheat was similarly afflicted EUR0.25 lower to EUR0.25 higher.

Now that yesterday's USDA report is out in the open there was a distinct lack of fresh fundamental news today. Exactly when we are now going to get the next set of new impetus seems unclear. We basically seem to have reached a plateau period in prices.

Growers in the UK and on the continent seem less than eager to sell at current levels, end-users on the other hand are far from falling over themselves to buy at the moment either. It's a classic impasse.

It may well take until the spring, when winter wheat emerges from dormancy and we get a clearer idea of 2010 crop production, before we get some new direction into the market.

Until then we may be largely treading water, with markets moving only slightly this way and that. It may be that currency movements will have the largest influence on prices up until then.

Unfortunately they are no easier to predict than grain market fluctuations. Will EU finance minister mount a bailout mission for Greece? If they do who is next? And what are the prospects for the pound in the fallout of all of this, and in the run-up to a general election?