European Union wheat markets were generally weaker on Wednesday following more favourable weather reports and light profit-taking in the wake of repeated price rises in recent days, traders said.
French wheat prices dipped, partly due to better weather forecasts for key producing regions, traders said. "It's a breath back day," one trader said, pointing to improved weather forecasts for the United States, Australia and southern France.
In a surprise move, Tunisia's grain agency launched a tender to buy 100,000 tonnes of optional origin milling wheat for shipment in May or June. Traders said the recent rise in EU prices plus the euro's strength against the dollar would limit the chances of EU wheat winning the tender.
France's arable crops office ONIGC cut its forecast of the country's 2006/07 soft wheat ending stocks by 232,000 tonnes to 2.08 million tonnes - 25 percent below last season - after it sharply revised down its estimate of the 2006 crop.
London feed wheat slid back in line with the French market after US futures failed to hold most of their gains on Tuesday, prompting light profit taking, traders said.
Prices in London were weaker across the board. "Nothing goes up in a straight line, we've had a small pull back today after the US market stalled a little, but it's nothing too serious," one trader said.
Traders said the underlying trend remained relatively bullish with lingering concern over dryness in Europe that could affect the coming crop. However, volatility might increase due to weather concerns.
"At this stage of the season, when you are in a weather market, prices can move around," a trader said. "We could just as easily see a bit of a retracement if we get good rainfall."
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