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

Evening markets: export concerns sap EU grains

Twitter Linkedin eCard

Grain prices struggled on Monday, despite the absence of US markets, which have provided little but bearish influence of late.

US markets were closed for the Martin Luther King Day holiday.

Nonetheless, European grains ran into trouble over exports, or rather the potential lack of them, as buyers announced a plethora of tenders, but European grain appeared to be struggling to feature in winning bids.

There were rumours that Europe did feature strongly among winners of Saudi Arabia's huge 440,000-tonne tender. But only rumours.

Saudi did not go beyond announcing the winning trading houses and the average price.

Elbowed out

What was more certain was that Kazakhstan had agreed a 1.5m-tonne supply deal to Egypt, the world's biggest wheat buyer.

With Egypt also formalising relations with Russia over supplies, the patch that others such as Europe can compete for is getting smaller and smaller.

Paris wheat for March eased E1.25 to E126.00 a tonne, while its London feed wheat equivalent ended down £1.75 at £102.25 a tonne.

London commodities had the extra trouble of stronger sterling, which hit a one-month high against the dollar and four-month top against the euro.

Firm house price data soothed concerns for the economic revival, while GDF Suez's apparent interest in International Power raised thoughts of takeovers of UK companies, a process requiring sterling purchases.

'Tightening market'

Among softs, the pound also held back sterling-denominated cocoa, despite talk of a sharp drop in deliveries to Ivory Coast ports, and of dry weather posing a potential future problem.

London cocoa for March eased 0.7% to $2,290 a tonne.

However, dollar denominated coffee did better, adding 0.2% to $1,378 a tonne for March delivery. Data showing a drop in US green coffee stocks was marginally supportive.

And white sugar got back on the front foot, ending 1.3% higher at $732.70 a tonne, helped by Pakistan's launch of yet another tender.

Pakistan issued a tender for 50,000 tonnes of white sugar, taking the total it is seeking to 450,000 tonnes.

"The news all seems pretty much to indicate a tightening market," a London trader told

"It looks like prices are just going to keep rising for now."


Twitter Linkedin eCard
Related Stories

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe

Morning markets: Ag futures ease, as traders await key 2018 forecasts

US officials will later on Thursday issue the first of a series of forecasts for US crops in 2018-19. Markets are cautious in the mean time

Evening markets: Cotton rebounds 4% in two sessions. Soymeal recovers poise too

And even wheat futures end above intraday lows, as Russian cash prices rise, as to Paris futures as EU cold approaches

Glencore Agri manages 'resilient performance when compared to many peers'

... says Glencore, with strong Australian and Russian export market helping offset rapeseed crush setbacks and "limited arbitrage opportunities"
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