EU Wheat Ends Mixed
EU wheat futures closed mixed Tuesday with Paris November milling wheat closing up EUR1.25 at EUR143.50/tonne and London November feed wheat ending down GBP0.50 at GBP90.00/tonne.
The overwhelming feel is still one of bearishness, but there are just enough bullish snippets around to prevent the market falling out of bed so far this week.
A sharply firmer dollar against a weak euro yesterday added some enthusiasm that EU wheat might finally begin to be competitive on export markets.
France is also suffering from dryness as it progresses its wheat and rapeseed plantings.
One Australian analyst dropped its forecast for the 2008 wheat crop there to 20mmt from 21mmt, although this is still within the general range of estimates.
However, overall supply and demand fundamentals are still bearish. A lower close for CBOT wheat overnight may well see EU futures resume their downwards trend when trading begins Wednesday morning.
The overwhelming feel is still one of bearishness, but there are just enough bullish snippets around to prevent the market falling out of bed so far this week.
A sharply firmer dollar against a weak euro yesterday added some enthusiasm that EU wheat might finally begin to be competitive on export markets.
France is also suffering from dryness as it progresses its wheat and rapeseed plantings.
One Australian analyst dropped its forecast for the 2008 wheat crop there to 20mmt from 21mmt, although this is still within the general range of estimates.
However, overall supply and demand fundamentals are still bearish. A lower close for CBOT wheat overnight may well see EU futures resume their downwards trend when trading begins Wednesday morning.