Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Cairo snub sends Paris wheat to three-year low

Twitter Linkedin eCard

Wheat prices touched a three-year low in Paris after Egypt - the world's biggest buyer of the grain - shut out Canada, France and the US from its latest tender, buying all 240,000 tonnes from Russia.

Egypt's state grain group, the General Authority for Supply Commodities, said it had paid $166 per tonne for eight 30,000-tonne cargos of Russian grain.

The purchases were made from Bunge, Dreyfus, Valars and Venus.

The price was below the $169.50 a tonne offered by Invivo, the cheapest for French wheat, with Louis Dreyfus offering 60,000 tonnes of Canadian wheat at $167.75 a tonne, traders said.

Venus reportedly offered 60,000 tonnes of US soft red winter wheat at $165 a tonne.

'Fierce' competition

A weak showing for Europe had been expected in today's auction, thanks in part to the strengthening of the euro.

"The competition for the Egyptian new wheat tender today should be fierce with a weak US dollar penalizing our exports," Agritel, the French analysis group, said.

However, Russia's clean sweep acted as "a reminder that wheat prices may have further to go", a London trader told

"They're cheaper than they were, but that doesn't mean they can't get cheaper still."

Algerian order?

Australia's increase of 750,000 tonnes to its forecast for the 2009-10 wheat harvest added to the pressure on prices.

However, while Paris milling wheat for November fell to E118.50 a tonne, its lowest since July 2006, at one point, it rebounded to close at E121.15 a tonne, up E2.00 on the day, thanks to a strong start by Chicago crops.

Corn, soybeans and wheat soared on the Chicago Board of Trade on forecasts of a cold front hitting the US Midwest next week.

Rumours that an Algerian order for 300,000 tonnes of wheat has been placed with France also helped prices recover.

London wheat for November closed up £1.25 at £93.00 a tonne.


Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures torn between Argentina, China fears

... with one concern upbeat for prices, and the other decidedly bearish. Cocoa, wheat end firm. But sugar comes close to a two-year low

Lean hog futures tumble - but it's not all China's fault

Beijing’s threat to impose a 25% tariff on imports of US pork is hardly bullish news for hogs. But it is not the only factor explaining tumbling prices

Weekly grains and oilseed market view from Europe, March 23

Wet weather slows spring sowings... are EU grain supplies as big as data suggest?... support to wheat prices from rises in Russian values...

Morning markets: Soybean prices hold, even as China-US trade tensions grow

Still, what of rising soybean prices in China itself - where sugar import data show how import levies can affect trade? US wheat futures extend their recovery
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069