December 3, 2004



Europe Cash Wheat Review: Markets Slowing Down Pre-Christmas


A lack of demand ahead of Christmas continues to keep European markets quiet Thursday, traders said.


Trade in French wheat remains quiet as farmer selling weighs on physical prices amidst thin demand.


"We're at the beginning of the free time before Christmas," according to a French trader.


French wheat was quoted at EUR106.00 a metric ton delivered Rouen, flat price, unchanged on the day.


A lack of farmer selling in Denmark has exports at a standstill with compounders mostly supplying from the domestic market, a compounder said. He said less than 10,000 tons have been imported from the U.K. since October, but even that has come to an end.


Danish demand is well covered until February or March, he said.


He quoted Danish feed wheat at EUR103/ton, basis FOB December and milling wheat at EUR108/ton, on the same basis.


Trade is near a standstill in the U.K. as well, traders said.


"I'm not sure if we'll see anything before Christmas but it's not looking very encouraging," a U.K. trader said. "I haven't heard of a trade all day."


He quoted East Anglia, FOB basis at GBP69/ton for January and GBP70/ton for February.

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