January 21, 2005

Europe cash wheat prices steady, awaiting decision 

European cash wheat prices are holding steady as traders and farmers alike hope for a positive decision on wheat export refunds during the European Union cereals management committee meeting Thursday, traders said.

But even if restitution was agreed to, they may be too little and too late to have an affect on European prices this year, traders said.

"If the E.U. doesn't open restitution, the (French) market will slip Friday or Monday," a French trader said. "But even if they do, I'm not sure prices will rebound."

French wheat for January delivery, basis delivered Rouen without monthly increments, was quoted at EUR97/ton, traders said. The USDA was Wednesday quoting Soft Red Winter wheat basis FOB Gulf at US$3.99 a bushel, or US$146.60/ton.

French Matif March wheat stood at EUR104.25/ton, up EUR0.50 on the day, while Liffe May wheat stood at GBP66.90/ton, down GBP0.20 on the day.