News
16.12.2009
EU wheat prices mostly up
Wheat prices in major western European markets were mostly higher on Monday, supported by a soyabean-led advance in US futures. Dealers said they were also closely monitoring cold weather in France although initial indications were that it appears unlikely to cause any damage to crops.
"Temperatures are negative (below freezing) in France and without (protection from) snow but not low enough to cause damage," one dealer said. January milling wheat futures in Paris settled 1.25 euros higher at 130.00 euros a tonne while the key May feed wheat contract in London ended 0.35 pounds higher at 110.25 pounds.
Dealers said a soft dollar and spillover support from soyabeans helped to fuel gains in US wheat futures despite slow export sales and abundant global supplies. Delays to the US corn harvest have also helped hold up grain prices despite the global glut of wheat. "Fundamentals remain bearish but if we have a fall it will be after the Christmas season," one dealer said.
Spanish wheat prices have eased slightly after hefty shipments to ports had helped create buyers' market, dealers said. Imported Black Sea feed wheat in Tarragona, the country's main import port, was quoted at 142/143 euros per tonne, down from 143 a week ago. "Preceding gains had all been based on volumes too low to be representative, so if someone steps in who really wanted to buy, he can name his price and get a discount on reference prices," said a report from the Mercolleida agricultural exchange.
Port sources have said that grain silos in Tarragona are brim-full and several substantial cargoes are expected to dock there in December. Italian grain prices were unchanged from the end of last week with standard bread wheat traded at 140-145 euros a tonne ex-store for prompt delivery in northern regions, with trade volumes remaining thin due to sluggish demand, traders said.
Supplies of imported wheat and maize from Germany, Austria and Hungary have tightened because of truck delivery disruptions triggered by problems with the export of Italian goods on the way back, they said. "People used to bring back Italian ceramics, car parts, other goods, but there is no demand for it now. So our importers have to delay deliveries," one broker said. "That could have pushed (wheat) prices up, but millers' demand is very weak."
Reuters
