EU Wheat Looking Too Expensive

13/02/12 -- EU grains finish sharply lower with Mar 12 London wheat down GBP1.50/tonne to GBP163.50/tonne and Mar 12 Paris wheat slumping EUR3.75/tonne to EUR206.75/tonne.

Paris wheat took the hardest hit on news that it was USD20-25.00/tonne inferior to US wheat in an Egyptian weekend tender. The recent slump in the freight market is clearly helping wheat travel further for less, with Argentine wheat also featuring into North Africa of late.

Last week's widespread reports of 200,000 MT of US wheat sold to Spain will also be fresh in traders minds. European wheat is still looking too expensive to export and domestic demand is sluggish to say the least.

Nearby Mar 12 London wheat fared better than other months which closed with losses of GBP2.05-2.85/tonne.

The euro was a bit firmer on news that Greece had cleared one more hurdle as it strives to jump through hoops to qualify for the next tranche of Troika bailout money.