April 6, 2007

 

EU Wheat: French futures, cash up on supply tightness

 

 

Paris-based milling wheat futures and French cash prices were both higher Thursday (Apr 5) as concerns returned over supply tightness throughout the European Union, but particularly in France.

 

"It's completely crazy," said a French trader. "It's like there is no wheat, not one kernel."

 

French standard wheat delivered to Rouen for nearby delivery was up EUR3-EUR4 at EUR146 a tonne. Earlier this week, buyers dropped their bids to EUR138/tonne due to the drop in international grain prices, but sellers didn't follow.

 

"There must be some wheat left, but the cooperatives don't have it," added the trader who said there was just enough domestic and export demand about to make buyers raise their bids.

 

Another French trader said that the market has mostly returned back to where it had been before a recent sharp drop in Chicago Board of Trade grain futures. He also said cash volume remain fairly light.

 

And lending further confidence, CBOT grain prices have also been working back higher.

 

Paris-based May milling wheat was up EUR2 at EUR154/tonne with 2,703 lots moved. And new crop November was up EUR3.25 at EUR137/tonne with 1,035 lots traded.

 

Meanwhile London-based May feed wheat finished unchanged at GBP96.50/tonne with 140 lots traded. November was up GBP1.05 at GBP87.95/tonne with 203 contract traded.

 

In other Euronext.liffe agricultural trade, June corn was up EUR2 at EUR160/tonne with 380 contracts moved. May rapeseed was up EUR1.50 at EUR253.50/tonne with 433 contracts traded.

 

There was no European Union grain management committee meeting Thursday because of Easter. Euronext.liffe agricultural markets will be closed on Friday and Monday.