December 25, 2006

EU wheat: Futures markets higher in line with US market rise

The European Union feed and milling wheat futures markets rose Friday (Dec 22), building momentum on an upward move in the US market, traders said.

Trade in the physical market was very thin before the holidays, traders said, although Algeria was said to be in the market for their usual large wheat purchase around this time of year.

"The market has been very quiet, though funds seem to be back in the driving seat in the US Overall I'm pretty bullish for the market heading into next year. We're very vulnerable to weather disruptions given very low global stocks," a trader said.

At 1505 GMT, March French milling wheat was the most traded and stood at EUR151 a tonne, up EUR1.25 on the day with 255 lots changing hands so far.

UK March feed wheat settled up GBP0.65 at GBP97.25/tonne with just five lots moved.