You Can’t Drink Crude Oil, And You Can’t Eat Cars
EU wheat futures closed lower Thursday, following Chicago markets down and pressured by a firmer pound and euro viz-a-viz the US dollar.
March Paris milling wheat futures closed down EUR2 at EUR149.50/tonne, whilst London May feed wheat ended down GBP2.75 at GBP120.25/tonne.
Downside pressure aslo came from an International Grains Council estimate that global wheat production in 2008/09 will reach 687mmt, up 4mmt from it's last estimate.
However world production in the coming 2009/10 season will fall to around 650mmt, they say.
A weaker dollar certainly contributed to lower European prices today, spot export demand is not great, and any strength in currency is going to hinder further price appreciation.
Still, prices have moved up a fair old bit from December contract lows, almost 50% in the case of March London wheat, yet farmers remain reluctant sellers.
Are they insane? Do they know something we don't? Or are they just eternal optimists?
On the other hand, could there be more a more rational explanation? I think there could, and it's all explained in my latest private missive: You Can’t Drink Crude Oil, And You Can’t Eat Cars
Now we have some good news and some bad news here. If you want to read this, don't panic it's free, I know that you don't like being parted with your hard earned cash. All you have to do is email me at info@nogger.co.uk and I will send you my own personal thoughts on the global grain market for 2009.
Lets call it "market research", I want to see how many of my 1000 hits a day actually READ this stuff.
And also at the end of the day it wouldn't suit any of us if we all had the same market opinion now would it?
March Paris milling wheat futures closed down EUR2 at EUR149.50/tonne, whilst London May feed wheat ended down GBP2.75 at GBP120.25/tonne.
Downside pressure aslo came from an International Grains Council estimate that global wheat production in 2008/09 will reach 687mmt, up 4mmt from it's last estimate.
However world production in the coming 2009/10 season will fall to around 650mmt, they say.
A weaker dollar certainly contributed to lower European prices today, spot export demand is not great, and any strength in currency is going to hinder further price appreciation.
Still, prices have moved up a fair old bit from December contract lows, almost 50% in the case of March London wheat, yet farmers remain reluctant sellers.
Are they insane? Do they know something we don't? Or are they just eternal optimists?
On the other hand, could there be more a more rational explanation? I think there could, and it's all explained in my latest private missive: You Can’t Drink Crude Oil, And You Can’t Eat Cars
Now we have some good news and some bad news here. If you want to read this, don't panic it's free, I know that you don't like being parted with your hard earned cash. All you have to do is email me at info@nogger.co.uk and I will send you my own personal thoughts on the global grain market for 2009.
Lets call it "market research", I want to see how many of my 1000 hits a day actually READ this stuff.
And also at the end of the day it wouldn't suit any of us if we all had the same market opinion now would it?