EU Wheat Priced Out Of Egyptian Tender

26/10/11 -- EU grains finished lower with Nov London wheat down GBP0.40/tonne to GBP150.50/tonne and Nov Paris wheat falling EUR2.75/tonne to EUR186.50/tonne.

Ukraine wheat was offered at USD23.00/tonne cheaper than French grain in Egypt's latest tender, but even that discount wasn't enough to undercut Russian wheat which was more than USD6.00/tonne lower.

At USD243.33/tonne Egypt bought two cargoes of Russian wheat at almost USD30.00/tonne cheaper than the best French offer, highlighting the uncompetitive nature of European grain on the world market.

News that EU leaders had struck some sort of accord on European debt came too late to affect the market on Wednesday, but will doubtless provide a little boost on Thursday morning.

The raising of the bailout fund from EUR440 billion to EUR1 trillion wasn't as high as some had expected however, and in truth all that they have done is bought themselves a little time before the bomb goes off.