Wheat futures in Chicago were the weakest link in the agricultural complex on Friday, moving further away from the recent 5 1/2 month high reached earlier in the week. Profit taking and positioning over the Christmas holiday and year-end, as well as the firmer US dollar exchange rate, put pressure on prices. Institutional investors sold 4,000 contracts of CBoT SRW wheat on Friday. This morning, eCBoT is trading slightly firmer.
On Euronext in Paris, wheat futures closed mixed with comparatively low trading volumes. Over the past week, prices have risen by 3 euros. The market was supported by the low willingness to sell in the agricultural sector and concerns that the strike over the pension reform in France will lead to logistical bottlenecks in times of constant export demand. Iran has bought over 1 million tons of wheat on the international market in recent weeks. According to traders, the goods originate from Russia and some EU countries, including Germany. Due to the trade tensions between Beijing and usual wheat suppliers such as the United States, Canada and Australia, wheat exports from the European Union to China, mainly from France, are likely to reach one million tons.
Source
HANSA Terminhandel
