HGCA: Euro wheat futures recover
Tuesday, 12 December, 2000
MATIF wheat futures recovered some ground after reaching
MATIF January wheat closed at
The Euro posted a strong rebound against the dollar, reaching over 90US¢ Friday. The Euro has lost almost 30% of its value since its launch. The weak Euro had been a principle driver behind zero export refunds, particularly for wheat.
The French Farm Ministry and ONIC both released forecasts of French wheat area for 2001 harvest of around 4.8m ha last week.
This compares to a harvested area in 2000 of over 4.9m ha. Winter barley area was forecast stable from 2000 at 1.09m ha.
The EU paints a more favourable picture for cereal markets over the medium term in its outlook to 2007.
Helped by the recent CAP reform and better market conditions, total intervention stocks in 2003 are expected to fall to 8.6m tonnes from the 2000 forecast of 12.2m.
Other news saw standing refunds for wheat flour reintroduced, at
113.75 last Friday in response to the EUs discussion of a 500,000-tonne French wheat intervention sale. 115/t last week. Forward contracts closed 0.50 higher. November 2001, at 121.50, is priced close to LIFFE futures and consequently at a similar US$5 discount to Chicago.
4 per tonne. Import duties were also revised.
1 = 60.74p or 89.66US¢ om 18 December
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Taken from HGCA weekly MI Bulletin To contact the HGCA phone 020 7520 3972 Click here to visit the Home-Grown Cereals Authority |
