June 16, 2006

 

Europe cash wheat: Prices mostly stable on reduced weather concerns

 

 

European cash wheat prices on Thursday (Jun 15) were mostly unchanged on the day following Wednesday's slip back. Cooler temperatures and scattered showers have alleviated recent crop concerns.

 

French standard wheat delivered Rouen July/August was flat at EUR111.50 a tonne.

 

In northern France, temperatures declined about 10 degrees from the recent highs, said a French trader. He also said some recent scattered showers have been reported in key growing areas.

 

Evaluations are in progress to try and determine how much the recent high temperatures affected the crop, but ideas are that there were only minor problems.

 

The warmth and dryness has helped dry and mature crops a bit faster. Barley harvesting in southern France is not at its early stages, said a trader.

 

Strategie Grains forecast 2006/07 EU soft wheat output at 118 million tonnes in a report issued Thursday, down 800,000 tonnes from the May estimate, but up 3 percent from the 2005/06 crop.

 

The Strategie Grains report said: "Weather at the end of June is now anxiously awaited because of its crucial impact on grain filling and quality - there is a risk of grain scald in France."

 

Trade was mostly quiet following industry functions in London on Thursday and as some dealers prepare themselves for the upcoming harvest

 

In the final weeks of the 2005/06 marketing year, the European Union grain management committee rejected all bids for the export of free-market and intervention wheat.

 

The committee did grant a total of 53,220 tonnes of intervention wheat licenses for the internal market from stores in Poland and Germany.

 

November French milling wheat ended flat at EUR116.75/tonne with 267 lots traded.

 

November London feed wheat also ended unchanged at GBP75.50/tonne with 20 lots moved.