The wheat market
Benchmark European wheat
prices reversed early gains in late dealing on Wednesday as
renewed weakness in the euro prompted a broad sell-off of
commodities such as oil and grains
* March milling wheat on the Paris-based Euronext
exchange was down 0.75 euro, or 0.42 percent, at 176.25 euros
($230) by 1658 GMT. The contract earlier rose as high as 178.00
euros.
* March milling wheat on the Paris-based Euronextexchange was down 0.75 euro, or 0.42 percent, at 176.25 euros($230) by 1658 GMT. The contract earlier rose as high as 178.00euros.
* U.S. grain futures also fell on in tandem with other
commodities as the dollar surged on concern about the lack of a
solution to the euro zone debt crisis.
* "Europe has anticipated the fall in Chicago and has
ignored the fall in the euro. The fall below the $1.30 level has
been very symbolic," a Euronext trader said.
* Global stock markets and the euro fell on Wednesday on
worries about record-high borrowing costs for Italy and the lack
of new measures from the Federal Reserve to support growth
despite its warning that Europe's debt crisis could hurt the
U.S. economy.
* Traders played down hopes a weaker euro would make
European exports more competitive on world markets and some
cited nervousness over the future of the 17-nation currency.
* "People tell me: If I need the stuff for tomorrow, I'll
buy it, but if it is for March, I will just wait and see," said
a broker.
* The French farm office released monthly data that showed
only mild changes in 2011/12 wheat ending stocks.
SPAIN
* Spanish prompt physical feed wheat prices were little
changed as the market was in a lull ahead of the expected
arrival of cheap Ukrainian wheat in the New Year, with recent
weakness by the euro stifling demand in the import-dependent
market.
* Prompt feed wheat was quoted at 200-202 euros/tonne, down
1 euro from Monday, in leading grains port Tarragona.
* January-March wheat was meanwhile 6 euros firmer at 198
euros/tonne due to renewed buying interest.
* "At these prices cereals aren't terribly expensive for
feed compounders, whose margins have improved because meat
prices have risen," a dealer said. "All the TRQ permits will be
auctioned off without any problem."
* Prompt feed wheat has fallen by some 16.5 percent for the
year to date, according to Reuters data, while wholesale pork
has risen by about 14 percent on the Mercolleida agricultural
exchange.
GERMANY
* In Germany, prices were little changed with slow selling
by farmers again meeting with a lack of buying interest but with
the weaker euro boosting export hopes.
* Standard new crop bread-quality wheat for January delivery
in Hamburg was offered for sale flat at around 191 euros a tonne
with buyers were around 189. Buyers and sellers were
increasingly far apart in price ideas, traders said.
* Hamburg selling prices remained around 10 euros above
Paris futures as farmers retained produce in the belief 2012
supplies will be tight after Germany's disappointing 2011 wheat
harvest.
* "France's win in the Egyptian tender on Tuesday showed the
EU is not out of the export game yet," one trader said.
* "We could see more EU export sales if the euro holds well
below $1.32." The euro was around $1.30 on Wednesday.
* The recovery of levels on the Rhine and Danube rivers was
making transport easier as vessels had been sailing only partly
loaded since early November, and traders were organising
shipments of delayed loads.
* Prices at 1508 GMT
Product Last Change Pct Move End 2010 Ytd Pct
Paris wheat 176.50 -0.50 -0.28 252.50 -30.10
London wheat 142.75 -0.35 -0.24 199.00 -28.27
Paris maize 186.25 0.25 +0.13 235.00 -20.74
Paris rape 421.25 -1.75 -0.41 497.25 -15.28
CBOT wheat 587.00 -13.50 -2.25 794.25 -26.09
CBOT corn 582.75 -11.75 -1.98 629.00 -7.35
CBOT soybeans 1099.75 -18.75 -1.68 1393.75 -21.09
Crude oil 105.83 -3.67 -3.35 91.38 15.81
Euro/dlr 1.30 -0.01 -0.47 1.34 -3.03
* Paris futures prices in Euros per tonne, London wheat in
pounds per tonne and CBOT in cents per bushel.
($1 = 0.7721 euros)
(Reporting by Martin Roberts in Madrid, Michael Hogan in
Hamburg and Valerie Parent in Paris; editing by Keiron
Henderson)© Thomson Reuters 2011 All rights reserved
Source: newsroom - farmingnewsdaily.co.uk