EU Wheat Declines On Consolidation

10/02/11 -- EU wheat closed mostly lower with Mar London wheat down GBP1.25 to GBP209.00/tonne and new crop Nov GBP1.00 lower at GBP178.00/tonne. Mar Paris wheat fell EUR2.50 to EUR276.00/tonne, with Nov down EUR0.75 to EUR245.00/tonne.

The market consolidated slightly today following surges to fresh highs yesterday in the wake of the USDA's bullish stocks data for US corn.

EU exports appear to be slowing up a little, with Brussels today saying that soft wheat export licences totalled only 128,000 MT during the past week.

France have exported 32% more wheat (10.1 MMT) in the first six months of the 2010/11 marketing year (ie July/Dec) than in the previous season. Exports to nations outside the EU were up 57% during the same period.

Algeria reportedly bought a further 200,000 MT of optional origin wheat today, rumoured to be French.

It would seem that we have taken one step closer to suspending the existing EUR12/tonne import duty on feed wheat, which may allow abundant supplies of Australian low grade grain into the EU. A final vote on the matter, likely to come on Feb 24th, is still needed to get the motion passed however.