LIFFE/Euronext wheat futures down again
Liffe's European wheat futures fell again Thursday, setting fresh lows for the recent move in most contracts. Pressure spilled over from a drop in Chicago Board of Trade wheat futures and outlooks for a large 2008 harvest.
CBOT wheat futures closed Wednesday with losses of 34c in nearby May, and the overnight eCBOT session has also ended lower with May down 10c to $8.07 3/4. That's $5 42 1/4 below the all-time high set 27 Feb.
Nearby Paris May milling wheat is currently down EUR3.50 at EUR197.25 a metric ton, making a fall of EUR97.75 from the contract's high set on 11 Feb. New crop November is down EUR3.75 to EUR190.50/ton.
London May feed wheat is down GBP4 to GBP155.50/ton, that's GBP46 down on the contract high set as recently as 26 Feb. July has also fallen GBP4 so far today to GBP158.50/ton. New crop November is down GBP1.75 to GBP139.50/ton.
With first tender day against the London May contract scheduled for today, brokers have expressed concern about the continued high value of old-crop contract, GBP16/ton, over new crop. Recently, the Paris old-crop contracts significantly narrowed the premium over new crop, with May now holding just a EUR6.75/ton premium over November.
