EU Wheat Lower In Slow Trade
EU wheat futures closed lower Friday in quiet, low volume trade. London November feed wheat closed GBP0.50 lower at GBP89/tonne with just 25 lots traded all day.
During the past week over 70,000mt of physical wheat has been tendered against the November London futures contract. With the carry into January closing at £3.65/tonne Friday, this would appear to indicate that long-holders need to turn their stocks back into cash.
Paris November milling wheat ended down EUR0.75 lower at EUR144/tonne.
A stronger dollar provided some support Friday, with greenback reaching 1.2735 against the euro from 1.2862 Thursday. This should help EU wheat be competitive on the export front against US wheat. Even so Egypt and Jordan both bought Russian wheat this week.
EU soft wheat export licenses rose 494,000 tons for the week ended Oct. 28, data showed. Export licenses are now up nearly-three fold during the previous 18 weeks compared with the same period a year ago.
Even so, exports need to remain substantially higher to mop up the large surplus kicking around Europe.
The Australian harvest has now begun and farmers there are eager sellers under the new deregulated market, where they are no longer bound to sell to the AWB.
During the past week over 70,000mt of physical wheat has been tendered against the November London futures contract. With the carry into January closing at £3.65/tonne Friday, this would appear to indicate that long-holders need to turn their stocks back into cash.
Paris November milling wheat ended down EUR0.75 lower at EUR144/tonne.
A stronger dollar provided some support Friday, with greenback reaching 1.2735 against the euro from 1.2862 Thursday. This should help EU wheat be competitive on the export front against US wheat. Even so Egypt and Jordan both bought Russian wheat this week.
EU soft wheat export licenses rose 494,000 tons for the week ended Oct. 28, data showed. Export licenses are now up nearly-three fold during the previous 18 weeks compared with the same period a year ago.
Even so, exports need to remain substantially higher to mop up the large surplus kicking around Europe.
The Australian harvest has now begun and farmers there are eager sellers under the new deregulated market, where they are no longer bound to sell to the AWB.