French wheat prices rose on this news, but also gained support from a lack of sellers and continued export demand.
Irans demand for EU wheat, with its purchase on Thursday of 100,000 tonnes of French wheat, may be a sign of things to come. Its last major purchase was back in July.
Hit by the worst drought in 30 years, Irans wheat import requirements for 1999 are said to be 5.6m tonnes, almost twice the amount imported over 1998.
The wheat harvest is some 25 % away from completion with most stores on farm filled. Limited storage capacity in the East of the country is said to have forced farmers to store grain outside.
Lower yields are expected from the recent drought, particularly in non-irrigated areas.
Taken from HGCA weekly MI Bulletin
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