December 7, 2004



Europe Cash Wheat: Weaker Dollar Weighs on Exports


European cash wheat prices are steady at midday Monday but export demand continues to be weakened by the lower dollar, according to traders.


The dollar has weakened near two cents against the pound and 1.5 cents against the euro since midday Friday, which has further hampered interest in European grains.


Traders are calling for the European Union to speed up in their decision to grant export restitution for wheat before a storage problem erupts beyond the new member states and into the old where countries have not been able to export.


French cash wheat, basis delivered Rouen for December, was quoted at EUR106 per metric ton. Bids for German B-wheat, basis delivered Hamburg for January was quoted at EUR106/ton but that farmers were looking to intervention rather than paying transport costs to Hamburg, a trader said.


European futures are quiet Monday with Liffe wheat Jan at GBP65/ton, down GBP0.50 on the day with 32 lots traded and French Matif wheat without trades except for Nov 05.

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