EU Wheat Bounces Of Lows Following CBOT

EU wheat futures are higher Monday, bouncing from recent lows set Friday as government measures to shore up banks sent stocks and crude oil higher.

Nov London feed wheat is £3.50/tonne firmer at £93/tonne and Nov Paris milling wheat EUR3.25/tonne higher at EUR146/tonne.

On Friday November London wheat closing below £90/tonne for the first time for a front-month since September 2006, whilst November Paris wheat hitt levels last seen in Jan 2007.

CBOT prices were boosted by news of Egypt's purchase of U.S. wheat. On Saturday, Egypt's main government wheat buyer GASC said it had bought a combination of 265,000 tonnes of Russian and U.S. wheat.

Jordan is also tendering for 100,000 tonnes of optional-origin hard wheat, traders said, following its purchase of 150,000 tonnes of Black Sea hard wheat on Oct. 9.

Also supportive was news that Argentina's 2008/09 wheat harvest is expected to shrink 28 percent from last year due mainly to prolonged drought, the Buenos Aires Grain Exchange said on Friday.