March 4, 2008
Old wheat crop futures rise, new crop falls in EU
Liffe's Paris-based milling wheat futures rose in old-crop contracts Monday due to a squeeze ahead of March's expiration next week.
Nearby months were also supported by a recent French wheat sale to Egypt, tight global stocks and higher Chicago wheat futures offered further support.
Paris March milling wheat ended up EUR8.75, or 3.1 percent, at EUR292.75 a tonne with 2,180 lots moved. Following along, May rose EUR3 to end at EUR281/tonne with 1,572 contracts traded.
"It's only a technical squeeze," said a Paris-based broker adding that those still holding short positions in the March contract were struggling Monday to get them covered.
Next Monday will be the last trading day for the Paris March contract, with notices issued March 11.
Meanwhile Paris new crop contracts fell in light volume as harvest prospects remained favorable. November settled down EUR2.25, or 0.9 percent, at EUR236/tonne with 731 lots moved.
In the cash market, as of midday standard French wheat delivered to Rouen for March to April delivery was up EUR1 from Friday at EUR274/tonne. Paris-based Infograin said physical activity was light.
Liffe's London feed wheat futures also suffered from a lack of activity and finished mostly unchanged on the session. May ended flat at GBP192/tonne with 57 lots moved.
Sunshine in February favored UK crop development, the Home Grown Cereals Authority said Monday in its weekly report citing crop expert, ADAS. Winter wheat development is not as advanced as the same time in 2007, but is still more advanced that seen in recent years.
Paris rapeseed futures continued their upward trend - together with soy products and palm oil - setting a new record high for the fifth session in a row in the front-month chart. May ended up EUR8 at EUR515/tonne with 573 lots moved. Earlier, May posted a new all-time high of EUR521.50/tonne.
Meanwhile, Paris-based corn ended steady-to-lower, with June unchanged at EUR205.75/tonne with 138 lots moved.
