Wheat prices in leading European grain markets were mixed on Tuesday in cautious trade while awaiting the outcome of hotly fought US elections and the impact on exchange rates of a US Federal Reserve meeting. The UN food agency's Cereal Price Index - which covers staples including wheat, rice and corn - climbed to its highest level since September 2008 but was still well below peaks seen for most of that year, according to FAO data.
In a Reuters interview on Tuesday, the FAO's chief economist said global supplies are stronger now than during the 2007/08 crisis and cereal prices remain well below critical levels. In Europe's leading exporter France, milling wheat futures in Paris turned lower in afternoon trade, weighed down by weaker Chicago prices, technical trading and competition from southern hemisphere wheat in Egypt's latest import tender.
Benchmark January milling wheat on Euronext was down 3.00 euros at 218.25 euros ($304.2) a tonne by 1721 GMT. French wheat won more business in Egypt's tender but the world's largest wheat importer also bought Argentina and Australian wheat.
"In the search for the best price, the result of Egypt's tender shows that we will have to take account of other origins," one trader said. Paris prices were also dragged down by a drop in Chicago wheat that was partly dented by the absence of any US wheat in Egypt's purchase.
Benchmark futures in Paris were also hit by technical pressure as the market filled a chart gap between 219 and 218.50 euros, operators said. In major importer Spain, feed wheat prices posted cautious gains due to volatility in international markets, while bread-quality wheat held steady due to thin volume and competition for imports from domestic new crop. Imported feed wheat in the country's main grain port Tarragona was last quoted at 208-210 euros per tonne, up 2-3 euros from a week ago.