August 27, 2009

EU wheat markets were mostly higher on Monday (Aug 24) with surging soy prices in Chicago and as farmers withhold their produce.

Wheat futures in Paris and London were boosted by a jump in soy, reflecting strong Chinese demand and worries about late-maturing US crops, and by upbeat economic sentiment that fuelled gains for equities and crude oil.

But traders cautioned that the gains were modest and did not remove the bearish context that had seen benchmark futures set successive contract low during August.

By 1608 GMT, November milling wheat added EUR1.25 or 0.99 percent to EUR128, which traders said represented a minor resistance level ahead of a more important psychological ceiling at EUR130.

November feed wheat climbed 1.15 pounds or 1.19 percent to 97.40 pounds per tonne as the market rebounded from last week's contract low of 95.25 pounds.

Germany's, new crop standard bread wheat for September delivery in Hamburg was offered for sale up one euro at EUR131 a tonne with buyers at EUR129.

In the import-hungry country's leading grain port Tarragona, prompt feed wheat was quoted at EUR130-131 per tonne, ex-store, which was unchanged since the middle of last week, down EUR3-4 from 10 days ago.

US$1 = EUR0.7 (Aug 27)