European wheat prices mostly stable
European wheat prices were mostly stable on Monday, shrugging off a rise on US markets and regaining some competitiveness. By 1301 GMT, front month March on European milling wheat futures was unchanged at 248.50 euros a tonne. Wheat futures rose in Chicago market after a two-week slide, underpinned by Egypt's purchase of US wheat over the weekend, which did not come a surprise in light of the grain's competitiveness on world markets.
Copyright Reuters, 2013
Egypt, the world's biggest importer of wheat, bought 60,000 tonnes of US Soft Red Winter wheat for shipment in March 1-10 from Venus at an aggressive price of $306.80/tonne with freight costs of $25.64. "Operators remain torn between world stocks which could rebuild in case of normal weather conditions by this summer and fears of extreme tightness on any sign of weather problem," French analyst Agritel said in a note. There was additional support for the wheat market from expectations Russia, the world's third largest exporter, may cut duty to make imports attractive and ease tight domestic supplies.