HGCA: Euro wheat futures recover

Tuesday, 12 December, 2000

  • MATIF wheat recovers after last weeks dip

    MATIF wheat futures recovered some ground after reaching Euro113.75 last Friday in response to the EUs discussion of a 500,000-tonne French wheat intervention sale.

    MATIF January wheat closed at Euro115/t last week. Forward contracts closed Euro0.50 higher. November 2001, at Euro121.50, is priced close to LIFFE futures and consequently at a similar US$5 discount to Chicago.

  • Euro within 10US¢ of dollar parity

    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.

  • French winter crop areas forecast lower

    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.

  • EU Prospects for Agricultural Markets Report

    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.

  • Full report at www.europa.eu.int/comm/dg06

    Other news saw standing refunds for wheat flour reintroduced, at Euro4 per tonne. Import duties were also revised.

  • Euro1 = 60.74p or 89.66US&#162 om 18 December

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972

    Click here to visit the Home-Grown Cereals Authority


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