November 9, 2009
EU wheat falls in line with lower commodity markets
European wheat futures slipped Friday (November 6), in line with lower commodity markets.
"There's a lack of liquidity from farmer selling and limited domestic buying by consumers," said a UK-based broker.
January Paris milling wheat closed down EUR0.25, or 0.2 percent, at EUR131.50 (US$196.06) a tonne, with 2,326 lots moved. London May feed wheat traded down GBP0.60, or 0.5 percent, at GBP111.90/tonne, with 144 lots moved.
As harvest weather has improved for US corn and soy, wheat seeding should be able to follow as soon as harvest progresses, said a London-based broker.
US Department of Agriculture grain production figures are updated next week, which may give impetus for support.
"Next week we expect the US Department of Agriculture to announce a downgrade to its corn production projection," said Deutsche Bank. "We expect production downgrades could also occur in soy," added the bank.
Although wheat is "not the driver" of the grains markets for now, if corn and soybean production are revised lower there could be spillover support to wheat prices, said the London-based broker.
Standard-quality wheat prices in the French cash market delivered at Rouen were down EUR1 from Thursday's prices at EUR123/tonne.
Paris-based February rapeseed traded down EUR4.25, or 1.6 percent, at EUR269.75/tonne, with 2,021 lots moved. Liffe's Paris January corn traded down EUR0.25, or 0.2 percent, at EUR134.75/tonne, with 194 lots moved.
US$1 = EUR0.67 (Nov 9)
