October 26, 2009
EU wheat rallies to three-month highs on consumer buying
European wheat futures rallied to three-month highs Friday (October 23), initially boosted by consumer buying and spillover strength from the US, before trimming gains on profit-taking.
"There's a good flow of financial money and the CRB commodity index is at highs for the year," European currencies are weaker, this is all buoying the grains markets, said a London-based broker.
November Paris milling wheat futures ended up EUR0.50, or 0.4 percent, at EUR132.00 (US$198.46) a tonne, with 4,679 lots traded. London November feed wheat futures closed up GBP2.00, or 1.9 percent, at GBP105.50/tonne, with 572 lots traded.
"Grains market continue to firm further, galvanized by forecasts for continued rainfall in the US Midwest adding to harvest delays following a late planting season," said Barclays Capital in a commodities note published Friday.
However, brokers warned that Europe remains overflowing with wheat and the fundamental picture hasn't changed.
However, "some consumers are getting edgy with the market rallying," said the London-based broker.
Standard-quality wheat prices in the French cash market delivered at Rouen were up EUR2 from Thursday's prices at EUR125/ton.
Paris-based November rapeseed traded down EUR3.25, or 1.2 percent, at EUR265.75/tonne, with 1,015 lots moved. Liffe's Paris November corn traded up EUR1.50, or 1.1 percent, at EUR131.50/tonne, with 590 lots moved.
US$1 = EUR0.66 (Oct 26)
