July 29, 2009

European wheat futures hit fresh 2009 lows Tuesday (July 28) on a lack of positive news, before closing mixed.

"There needs to be a big fundamental change to support the market - we need to see some fresh business or massive demand, and it's not there," said a London-based broker.

November Paris milling wheat closed up EUR0.25 (US$0.35), or 0.2 percent, at EUR135.50 (US$192.21) a tonne, with 8,419 lots moved. London November feed wheat ended down GBP0.85, or 0.8 percent, at GBP102.50/tonne, with 315 lots moved.

While harvest pressure is usual for July and August, a second consecutive bumper crop is weighing heavily on the market, said a Spain-based broker.

As physical prices haven't come down as fast as the futures market, consumers are holding out on making any substantial purchases, which is also holding back prices, said the broker.

According to forecasters, the weather outlook has improved slightly with isolated showers expected to have limited impact on crops.

However, there remains a possibility that any wet weather could delay harvests and induce crop deterioration, said the London-based broker.

Standard-quality wheat prices in the French cash market delivered at Rouen fell EUR1 from Monday's price to EUR127/tonne.

Liffe's Paris November rapeseed traded up EUR0.25, or 0.1 percent, at EUR261.00/tonne with 5,830 lots traded. Paris November corn traded up EUR1.00/tonne, or 0.8 percent, at EUR129.25/ton with 521 lots moved.

US$1 = EUR0.70 (July 29)