EU Wheat Close
17/01/11 -- EU wheat futures closed mixed Monday, with nothing in the way of fresh impetus from a closed US market. London wheat finished sharply lower with Jan down GBP3.75 to GBP189.60/tonne and Nov falling by GBP1.00 to GBP166.50/tonne. Paris wheat saw Mar up EUR1.25 at EUR257.75/tonne and Nov EUR1.75 higher at EUR227.75/tonne.
It's been twenty sessions since front month London wheat closed below GBP190.00/tonne, falling today on a firmer pound and concerns over demand for feed wheat from an ailing livestock sector.
Paris milling wheat rose on reports that Algeria was again back in the market buying wheat over the weekend, despite soaring prices, in an effort to quell continued unrest over soaring food prices in the North African nation.
A weak euro also helped Paris wheat push firmer.
Countries like Algeria and Tunisia seem to be willing to buy almost any wheat they can get their hands on at the moment, with reports today suggesting that the former bought more than half a million tonnes on Friday.
Whilst Argentina and Australia are expected to flex their export muscles over the coming months, the formers growers have just begun a one week strike, whilst flooding and quality concerns in the latter may also impact upon their shipments to foreign destinations.
Meanwhile if you are a desperate North African buyer faced with civil unrest and a military coup, then buying wheat on your relative doorstep from a reliable supplier like France looks an attractive proposition.
