November 21, 2006

 

EU wheat: French cash, futures higher on Chicago rally

 

 

French wheat cash and futures prices were up Monday (Nov 20) as some demand resurfaced but commercial activity remained on the sidelines.

 

"There was a bit more demand for consumption, but trading wasn't terribly active," a London-based trader said.

 

The trader said the French and UK futures markets were volatile in the morning "on the back of a rally caused by option closing in Chicago."

 

Late in the day, January French milling wheat was up EUR1.25, or 0.8 percent, at EUR155 a tonne, with 1,201 lots traded, and March was up EUR1.00, or 0.6 percent, at EUR155.75/tonne, with 277 contracts moved.

 

UK feed wheat was mixed. January ended down GBP0.15 at GBP97.75/tonne. March ended up GBP1.00 at GBP100/tonne with 70 contracts traded.

 

French standard cash wheat in Rouen was up EUR1.00 at EUR149.00 a tonne for November to March delivery.

 

"Barley remains bullish," the trader said.

 

The trader said with most consumer needs covered until the New Year, it's a normal period of quiet.

 

An outlook released by Earth Satellite's Cropcast Monday said grain planted in the autumn from Poland south to Hungary weren't well established due to limited moisture, but that a milder winter forecast should limit damage.