March 6, 2009
EU wheat lower, under pressure from outside markets
European wheat futures trade lower, under pressure from outside markets, as equities tumbled late in the session Thursday (March 5).
New crop continues to attract more interest than old crop, supported by expectations of a smaller harvest in 2009.
"Export concerns continue for old crop and uncertainty over new crop production maintains a healthy new crop price premium," said UK cooperative Openfield.
Paris May milling wheat futures trade down EUR0.50, or 0.4 percent, at EUR135.75 a tonne, with 2,442 lots traded. London May feed wheat closed down GBP1.25, or 1.1 percent, at GBP107.75/tonne, with 191 lots moved.
A lack of fresh demand has brokers hoping business will pick up later in the month.
"Quite a bit of business had been done so there's plenty to execute in the coming weeks," but by the end of the month that will all have mostly been done, said a UK-based broker.
With February traditionally being a quiet month, demand usually picks up in March as consumers seek cover for April, May and June, added the broker.
China has announced plans to increase agricultural investment by 20 percent in 2009, to be spent on farmer subsidies, seeds, equipment and inputs. However, this is the lowest growth in annual agricultural spending over the past three years in the country.
Standard-quality wheat in the French cash market delivered at Rouen was up EUR1 from Wednesday's price at EUR128/tonne.
Liffe's Paris June corn traded down EUR1.50 or 1.2 percent, at EUR128.50/tonne, with 261 lots moved. Paris-based May rapeseed traded down EUR1.50, or 0.6 percent, at EUR266.50/tonne, with 2,037 lots moved.
