November 19, 2009
EU Wheat: Mixed, supported by firm outside markets
European wheat futures traded mixed Wednesday (November 18) as firm outside markets continue to support wheat.
The market is due a correction but, as long as the commodities complex is strong with higher oil prices and gold hitting fresh highs, wheat is seeing spillover support, said a broker.
January Paris milling wheat futures closed down EUR0.50, or 0.4 percent, at EUR134.25 (US$200.32) a tonne, with 3,565 lots moved. London November feed wheat futures ended up GBP0.50, or 0.4 percent, at GBP113.00/tonne, with 168 lots moved.
Physical activity is slow; "it's so quiet, there's not consumer interest," said a UK-based broker.
Denmark and the UK are sellers but there is no demand from Spain and the UK prices aren't competitive, said the broker.
Despite offers of large quantities of European feed wheat into the EU's intervention stocks, prices haven't responded, said Germany-based trade house Toepfer International in its monthly report.
"For the export to third countries, EU feed wheat is still not competitive," with barley likely to be exported instead, said the report.
Toepfer also noted the lack of demand for milling wheat.
Standard-quality wheat prices in the French cash market delivered at Rouen were up EUR1 from Tuesday at EUR125/tonne.
Paris-based February rapeseed traded up EUR2.75, or 1 percent, at EUR280.75/tonne, with 2,911 lots moved. Liffe's Paris January corn traded down EUR0.50, or 0.4 percent, at EUR136.25/tonne, with 147 lots moved.
US$1 = EUR0.67 (Nov 19)
