French wheat ended the week in a subdued mood on Friday with prices under light pressure from the EU's decision to sell off almost 700,000 tonnes of stocks from intervention stores next month, traders said.
On Euronext futures, the May position opened some 0.50 euros lower, but by 1500 GMT had recouped its losses to stand unchanged at 158.00 euros a tonne.
Front month March was 0.25 euros down at 155.50 but in light volume of just 20 lots.
On the cash market, traders quoted prices of 148 euros a tonne bid, basis Rouen public silo, for Feb/June delivery a fall of one euro compared to Thursday.
But they also quoted private silo prices of 150 euros a tonne bid for same delivery period, unchanged from Thursday.
"The fall is more psychological than fundamental," one trader said. "The sale of the EU stocks was already factored into the balance. The market needs this produce," another said.
On the internal market, traders said lower bid prices had failed to entice sellers, who were holding onto what little supplies they had left.
On Thursday, the EU's grain management committee surprised the market by agreeing to the sale of almost 700,000 tonnes of soft wheat held in intervention.

Copyright Reuters, 2004

Comments

Comments are closed.