EU Wheat Closing Comments

EU wheat closed mixed, but mostly lower Monday. November London feed wheat ended down GBP0.85 at GBP101.25/tonne, and November Paris wheat was EUR0.25 easier at EUR139.25/tonne.

Front month London wheat fell sharply to close down GBP3.50 at GBP97.00/tonne. November London wheat threatened to test the GBP100/tonne mark, touching GBP100.50 at one point before recovering slightly.

Good and widespread weekend rains, and plenty more rolling in off the Atlantic as the week wears on, have eased crop concerns in the UK and France considerably.

Even so German analysts F O Licht dropped their 2010/11 EU-27 wheat production estimate by a million tonnes to 141.7 MMT.

UK ex farm prices are now around GBP90/tonne for harvest, fully ten pounds down from their recent highs set only a fortnight ago. Farmer interest at selling at these levels will likely be limited given a drop of that magnitude in such a short time.

Certainly selling will be exceptionally reluctant at anything that starts with an eight.

Paris wheat was underpinned by the euro continuing along it's one way street descent to multi-year lows.