EU Wheat Extends Recent Losses

EU wheat extended recent losses Wednesday, closing with London March feed wheat down GBP1.80 at GBP98.75/tonne and Paris March milling wheat ending EUR1.00 lower at EUR125.75/tonne.

US wheat futures also continue to decline, with the market nervous ahead of President Obama's State of the Union address tonight, and what he might have in mind for US banks.

Egypt passed on US and EU wheat yet again today, buying 180,000 MT of Russian milling wheat at USD178.50/tonne FOB (circa GBP110/tonne).

Kazakhstan might have missed out on the Egypt tender today, but they are flexing their muscles on the wheat export front. They've recently announced a deal to supply Egypt with up to 1.5 MMT of it's requirements in 2010. Georgia has offered the Kazakhs a facility to transport grain by rail to the world's largest buyer, which will make them more competitive they say.

All of that, combined with the new minimum 60,000 MT one port of loading rules, leaves France pretty high and dry in terms of getting a look in with Egypt for the time being.