EU Wheat Closes Lower Monday
EU wheat began the week in consolatory mode after posting significant gains over the past few weeks. Paris November milling wheat ended down EUR3 at EUR129/tonne, and London November feed wheat closed down GBP2 at GBP103.50/tonne.
The market began the day firmer, following higher US trade on the overnight eCBOT market. However as the US market slumped sharply lower shortly after the opening, EU wheat was dragged lower with it.
US wheat posted sharp gains last week as the soybean and corn harvest lags, potentially reducing winter wheat acres. A slightly improved US weather outlook this week was sufficient this afternoon to send soy, corn and wheat futures tumbling. That was all it took to send EU wheat into retreat.
Falling stocks and a weak crude oil market also weighed on wheat today. Export interest remains scant, with Ukraine picking up three cargoes of feed wheat tender business to the Philippines over the weekend.
Russia will begin grain intervention purchases on Nov 2nd, but the amount of money allocated to such buying this year is only likely to be 25% of what was available last year.
The market began the day firmer, following higher US trade on the overnight eCBOT market. However as the US market slumped sharply lower shortly after the opening, EU wheat was dragged lower with it.
US wheat posted sharp gains last week as the soybean and corn harvest lags, potentially reducing winter wheat acres. A slightly improved US weather outlook this week was sufficient this afternoon to send soy, corn and wheat futures tumbling. That was all it took to send EU wheat into retreat.
Falling stocks and a weak crude oil market also weighed on wheat today. Export interest remains scant, with Ukraine picking up three cargoes of feed wheat tender business to the Philippines over the weekend.
Russia will begin grain intervention purchases on Nov 2nd, but the amount of money allocated to such buying this year is only likely to be 25% of what was available last year.