PARIS: Euronext wheat edged higher on Friday, supported by a bounce in Chicago futures, as participants adjusted positions before widely followed world crop forecasts from the US government.
Uncertainty over a wartime export corridor from Ukraine ahead of a deadline next week was also underpinning prices, though ample supplies in the rest of the Black Sea region remained a curb on the market, dealers said.
September wheat, the most active contract on Paris-based Euronext, was up 0.6% at 237.75 euros ($261.72) a tonne by 1447 GMT to halt a four-day slide.
Ukraine, Russia, Turkey and the United Nations discussed on Thursday United Nations’ proposals to extend the Black Sea deal allowing safe maritime export of Ukrainian grain beyond its May 18 expiry date.
Turkey said on Friday that parties to the Black Sea grain pact were nearing a deal on the extension, but the Kremlin said there was nothing new to report and cautioned that a potential call between the leaders of Turkey and Russia would not help to clinch an agreement.
Concern over a possible interruption to Ukrainian shipments has been tempered by large stocks in other Black Sea exporting countries like Russia and Romania.
A large purchase by Algeria in a tender on Wednesday underscored Black Sea competition. “The Algerian tender dampened the export mood. Prices were aggressive and there is a lot of wheat available in eastern Europe,” a futures dealer said.
Port data in France showed more loadings for Morocco, the main outlet for European Union wheat this season. The condition of French soft wheat improved slightly in the week to May 8 to stay at its best in at least a decade, data from farm office FranceAgriMer showed on Friday.
In the rapeseed market, August futures on Euronext fell to a new life-of-contract low at 419.00 euros. Rapeseed has been pressured by favourable crop conditions in Europe, weakness in crude oil and plans by Sweden to slash biodiesel requirements.
Source: Brecorder
