September 11, 2007

European wheat jumps after US markets hit records

European wheat prices gained steam again on Monday (September 10) after a surge on US markets due to renewed export demand amid tightening world supplies and continued crop concerns in Australia, traders said.

Wheat prices fell sharply at the end of last week on profit-taking after a five-month surge that pushed up prices more than 130 percent in five months. But the fall was short-lived.

On Monday, wheat futures gained 6 percent on average in Paris and 2.5 percent in London.

A French trader said the crop situation particularly in Australia is causing a lot of worry.

In London farmers cooperative Grainfarmers said export demand remain strong and Australia is not yet getting the predicted rain.

By 1410 GMT the Paris-based Euronext milling wheat futures gained between 15.00 and 16.50 euros a tonne with benchmark November up nearly 6 percent at 282.00 euros a tonne after briefly hitting 286 euros in morning trade.

That was still below the contract's record peak of 300 euros a tonne hit last week.

Feed wheat futures in London were between 4.00 and 6.50 pounds higher with November up 6.00 pounds or 3.4 percent at 182.50 pounds a tonne. The contract had reached 197.50 pounds on Wednesday.