EU Wheat Futures Post Modest Gains
EU wheat futures posted modest gains Monday with Paris November milling wheat closing up EUR2.00 at EUR172.00/tonne. London November feed wheat finished up GBP0.50 at GBP107.00/tonne.
Firmer outside markets helped wheat, with crude oil and metals both firmer.
However, a sharply weaker dollar on the back of the proposed $700 billion US rescue package for the financial markets will do little to help EU export ambitions.
UK wheat quality remains a problem,in the north in particular, and it is difficult at this stage to see where all this extra low grade wheat will go.
Strong competition from the Black Sea remains, plus a large EU corn crop is about to come onto the market.
Fundamentally, nothing much has changed. Large crop, low prices.
Firmer outside markets helped wheat, with crude oil and metals both firmer.
However, a sharply weaker dollar on the back of the proposed $700 billion US rescue package for the financial markets will do little to help EU export ambitions.
UK wheat quality remains a problem,in the north in particular, and it is difficult at this stage to see where all this extra low grade wheat will go.
Strong competition from the Black Sea remains, plus a large EU corn crop is about to come onto the market.
Fundamentally, nothing much has changed. Large crop, low prices.