EU Wheat Closing Comments

EU wheat futures closed mostly flat to lower, with Nov London wheat ending unchanged at GBP105.50/tonne, and November Paris wheat down EUR0.75 at EUR141.00/tonne.

Saudi Arabia buying the majority of it's 990,000 MT wheat tender as German grain over the weekend was clearly supportive, even if Egypt did pass on EU origins to buy Russian/Kazakh wheat.

The euro seems to have moved sufficiently low enough for the time being however, which removes one of the elements that has been underpinning EU wheat of late.

The barley harvest is expected to begin this week in southern France, and has already begun in Ukraine, Bulgaria and other eastern European countries.

Flooding in places like Poland and the Czech Republic may lead to lower cereal output than had been anticipated a few months ago.

Further east lack of rain is the problem, with reports emanating from Kazakhstan suggesting that a spring drought may cut wheat yields quite significantly this season. The USDA currently has them down to produce 17 MMT of wheat this year.