June 19, 2006


European cash wheat flat to lower; many dealers absent



European cash wheat prices were unchanged to slightly lower Friday (Jun 16) amid limited activity with many dealers in France attending an industry function.


French standard wheat delivered Rouen July/August was down EUR0.50-EUR1.00 at EUR110.50-EUR111.00 a tonne. September-December delivery was steady at EUR113.50/tonne.


While cooler temperatures and some scattered rainfall have eased crop concerns during the key grain filling period, a French trader said that some areas still remain dry. However, more scattered showers could be seen Sunday.


While some initial barley harvesting has been reported in Spain and southern France, wheat harvest is not expected to begin in northern France until late July.


Export dealings are traditionally quiet this time of year after importing nations in North Africa finish with domestic harvest, especially this year after solid crops were produced there.


Many trade meetings are talking place ahead of the busy harvest season. Traders also point out that few influences stemmed from government decisions out of Brussels Thursday.


The European Union grain management committee rejected all bids for the export of both the free-market and intervention wheat.


For the internal market, the committee did grant a total of 53,220 tonnes of intervention wheat licenses from stores in Poland and Germany. The EU also decided to raise those resale tenders by 100,000 tonnes in Poland and 50,000 tonnes in Germany.


Recently requests were made by the trade to release some intervention stocks after free-stocks became too tight. Prices of the grain resold are not allowed to distort the current market.


German spot B-quality and feed wheat delivered Hamburg remained at EUR121.00/tonne Friday, a level seen for most of June.


New crop futures prices were slightly lower. French November milling wheat was down EUR0.25 late Friday at EUR116.50/tonne on 251 lots traded. London November feed wheat was down GBP0.25 at GBP75.25/tonne, on 53 contracts.


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