July 3, 2006

European cash wheat: French prices weaker as harvest looms

French cash wheat prices were slightly lower Friday (Jun 30) as harvesting of this year's crop looms with some initial cutting in Western France.

French standard new crop wheat, delivered Rouen, was down EUR1.00 at EUR108.50 a tonne for July/August delivery and was down EUR0.50 to EUR1.00 at EUR110.00/tonne to EUR111.00/tonne for October/December delivery.

However, in many areas of Europe, dealings were at a near standstill as traders wait for crops to mature and more indications over possible quality.

On Friday, the EU's organisation of grain traders, the Comite du Commerce des Cereales (Coceral), forecast EU soft wheat output at 117.8 million tonnes, down from Coceral's March estimate of 119.4 million tonnes, but still up from 115.3 million tonnes in 2005/06.

Futures prices were slightly higher in thin volume, recovering from Thursday's losses.

French November milling wheat was up EUR0.50 at EUR115.50/tonne with 340 lots moved. London November

feed wheat was up GBP0.65 at GBP75.25/tonne with 17 lots traded.