EU Wheat Resumes Downwards Trend

EU wheat futures resumed their downwards trend Wednesday after a few days of brief respite. November Paris milling wheat ended down EUR3.00 at EUR134.00.tonne, and London November feed wheat closed down GBP2.50 at GBP101.50/tonne.

A weak dollar contributed towards losses on EU wheat, with the pound close to a 11-month high set yesterday.

Egypt is tendering to buy wheat again tomorrow, which may provide some support if they go for French wheat, as has been the pattern recently.

US futures also fell after posting strong gains Tuesday, which added to the bearish tone.

Recent rains in Argentina appear to have arrested the startling decline in wheat production there, although that is still expected to come in at the lowest in a hundred years.

Patchy rains across much of northern Europe are hampering harvest activity, although no major yield losses are anticipated there could be quality implications.