January 26, 2005

Europe cash wheat steady while waits for EU refunds continue

Europe cash wheat prices are steady Tuesday, with players watching the level of proposed European Union wheat export refunds.

The E.U.'s cereals management committee said it will grant 2 million metric tons of wheat export refunds, holding its first license tender at its meeting Jan. 27.

A French grains broker said the level at which these refunds will be granted will be key for the market. He said some companies that had done business recently would be keen to secure licenses even at low refunds.

Business is relatively brisk, he said, with cargoes loading to Egypt and other north African destinations, and to China.

Despite the refunds, French offers into E.U. intervention stores rose to 307,200 tons, according to a notice posted on the ONIC Web site Monday.

French cash wheat prices, basis delivered Rouen for January, are quoted at EUR105.50 a ton. The USDA was Monday quoting soft red winter wheat, basis FOB Gulf, at US$4.0225 a bushel for January, or $146.71/ton.

At 1604 GMT wheat futures on the French Matif were up EUR0.50 at EUR106/ton.