August 18, 2008

 

EU wheat trades lower as US markets pressured
    

 

The EU wheat futures traded lower Friday (August 15) as the US markets fell on pressure from outside markets, including a stronger dollar against other currencies and losses in corn and lower crude oil.

 

After a steady start to the session with minimal volumes of activity due to most of the EU being on holiday, Paris and London fell slightly, following the pullback in US market prices.

 

November Paris milling wheat closed down EUR2.25, or 1.1 percent, at EUR194.50 a tonne. London November feed wheat ended down GBP2.00, or 1.6 percent, at GBP125.50 a tonne.

 

Fresh export demand from Iran and Egypt resulted in export sales of 689,310 tonnes of US hard red winter wheat for delivery to Iran, and 155,000 tonnes of Russian and Ukraine wheat to Egypt.

 

The premium for French milling wheat over London feed wheat continues to grow on concerns of more wet weather damaging UK crop quality.

 

However, brokers believe the damp harvest has now been priced into the London feed wheat futures.

 

Liffe's Paris-based November corn ended down EUR5.75, or 3.2 percent, at EUR175.00 a tonne. November Paris rapeseed was down EUR4.75, or 1.2 percent, at EUR384.25 a tonne.

 

US$1 = EUR0.6790; GBP0.5354 as of August 18, 2008
   

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