June 22, 2009

European wheat futures were near unchanged in subdued trading Friday (June 19) as the markets struggled to drum up much interest.

"There are no sellers and consumers think prices could go lower," so they're not buying, said a UK-based broker. "We need a week of stability before any business happens."

November Paris milling wheat traded EUR0.25 lower at EUR145.25 a tonne, with 3,870 lots traded. London November feed wheat traded 25 pence lower at GBP117.25/tonne, with 98 lots moved.

European markets were quiet with some countries celebrating Midsummer day.

"There's a dearth of news and crops are doing alright," so wheat doesn't have much to trade off of, said a London-based broker.

Wheat prices have tumbled since the beginning of the month as optimism that the macroeconomic outlook might be improving has faded.

Unofficial strike action at ethanol plant Ensus in Northeast England in support of construction staff fired at Total SA's Lindsey Oil Refinery has frustrated Ensus' chief executive Alwyn Hughes.

Hughes said Ensus has begun purchasing wheat and is on track to begin ethanol production this summer.

Standard-quality wheat prices in the French cash market delivered at Rouen were unchanged on Thursday's prices at EUR127/tonne.

Liffe's Paris August rapeseed traded EUR0.25 higher, or 0.1 percent, at EUR301/tonne with 802 lots traded. Paris August corn traded EUR3.00 lower at EUR143.00/tonne, with 46 lots moved.