EU Grains Mostly Lower, Weak Euro Supports Paris Wheat
30/12/14 -- EU grains drifted mostly lower heading into year end. Trade was predictably thin, and fresh news was lacking.
At the close Jan 15 London wheat was down GBP1.10/tonne at GBP133.85/tonne, Jan 15 Paris wheat was up EUR0.25/tonne to EUR200.25/tonne, Jan 15 Paris corn was EUR1.00/tonne lower at EUR157.75/tonne, whilst Feb 15 Paris rapeseed was EUR0.50/tonne easier at EUR354.75/tonne.
The euro fell close to it's lowest level against the pound in 18 months on renewed talk of a Greek debt default, with a general election there now less than a month away.
Greece's radical left Syriza party is leading in the opinion polls, and they say that "austerity will be history" if they win on Jan 25.
The weak euro was supportive for French wheat, as too was the notion that the newly introduced Russian wheat export duty will push more interest towards the EU, and France in particular.
Current bad weather conditions (snow and ice) in the Black Sea region is said to be causing disruptions to shipping.
Iraq bought 200 TMT of hard wheat in a tender, mixed one cargo each of Australian and US origin material and two from Canada. The prices paid were between USD325.93 and USD333.87 on a CIFFO basis.
Turkey bought 26 TMT of barley at between USD234-235/tonne C&F for January delivery.
Algeria are tendering for 50 TMT of optional origin milling wheat for Mar/Apr shipment.
Heading towards the end of what seems like another very volatile year, the HGCA interestingly say that whilst London wheat prices have varied by more than GBP60/tonne this year, that is in fact the second smallest price fluctuation range since 2007.