EU Wheat Close

Posted by Nogger - a legend in his own mind at 19:02 | Categorized as

28/01/11 -- EU wheat closed mixed, but mostly lower, with Mar London wheat down GBP0.75 to GBP203.25/tonne and new crop Nov GBP0.60 lower at GBP173.90/tonne. Mar Paris wheat rose EUR1.25 to EUR266.00/tonne, with Nov down EUR1.75 to EUR231.50/tonne.

A weaker US market took the shine off things today, although wheat still closed with significant gains on the week, especially for old crop months.

On the week as a whole Mar London wheat rose GBP4.50/tonne, with Nov up GBP1.90/tonne. Mar Paris wheat gained EUR6.50/tonne, with Nov up EUR1.75/tonne.

Yesterday's export figures showed EU soft wheat exports slowing somewhat to 240,000 MT in the past week, but they've hardly ground to a halt. Indeed, they need to slow as we are already 2.35 MMT up on this time last year.

Brussels said that they will make a decision on whether to scrap the existing EUR12/tonne import duty on wheat next month. Spain and other EU nations are already said to be eyeing imports of Australian feed wheat.

Meanwhile it would seem that almost three quarters of the EU barley intervention stocks earmarked for sale (some have been given away to the needy) have now been sold.

Continued unrest in Egypt, where the stock market fell 10% yesterday following declines of more than 6% the day before, is forecast to flush out the world's largest wheat buyer into issuing an import tender any day soon.