March 25, 2009

European wheat futures traded lower, lacking any fresh fundamental news Tuesday (March 24).

"The market will stay uncertain until May when we will start to have fresh news on crop development," said a Spain-based broker.

Paris May milling wheat futures trade down EUR2.50, or 1.8 percent, at EUR136.50 a tonne, with 4,810 lots moved. London May feed wheat traded down GBP2.25, or 2 percent, at GBP111.50/tonne, with 114 lots moved.

Trade continues to be conducted on a very short-term basis with business being carried out week-to-week, said the Spain-based broker. "This is the first time you have to ask the farmer for an offer and at the same time an importer has to have interest from a miller or compounder, everything has to be in a row."

Uncertainty in the demand outlook for grains will keep the markets under pressure in the near term, said Goldman Sachs.

The weaker dollar has made it difficult to export wheat from the European Union, Hamburg-based trading house Toepfer International said Tuesday.

Syria bought 100,000 tonnes of Russian wheat in a tender Tuesday. However, there's another opportunity for European exports at the end of the week when Saudi Arabia tenders to buy 500,000 tonnes milling wheat Friday, European traders said.

Standard-quality wheat prices in the French cash market delivered at Rouen were up EUR1 from Monday at EUR131/tonne.

Liffe's Paris June corn traded down EUR0.75, or 0.6 percent, at EUR132.75/tonne, with 179 lots moved. Paris-based May rapeseed traded up EUR1.00, or 0.4 percent, at EUR273.50/tonne, with 785 lots moved.