Wednesday, 29 July 2015 00:28
PARIS: European wheat prices edged higher on Tuesday after hitting a one-month low the previous day and supported by a rise on US markets, traders said.
December milling wheat, the new-crop benchmark on Euronext, was 1.00 euro or 0.5 percent higher by 1543 GMT to 185.50 euros a tonne.
That was not enough to compensate for the drop recorded on Monday when prices fell more than 4 euros a tonne.
“The market is taking a break. There is also some bargain buying after big losses in the past weeks,” a trader said.
Chicago Board of Trade wheat gained 0.7 percent.
Tunisia’s state grains agency has issued a tender to buy 134,000 tonnes of optional-origin soft milling wheat.
Wheat harvesting was delayed by rain in several parts of France.
“It should be nice weather later this week but it’s not sure it will be enough to bring enough harvest in with showers set to come back early next week,” a broker in Brittany said.
In Germany, widespread rain since the weekend has stopped harvesters rolling in some areas, but early harvest results are reasonable, traders said.
Wheat harvesting is advanced in south Germany and is moving northwards.
“We have had some pretty heavy rain since Friday and forecasts are for more wet and cool weather up to Thursday, so it looks like harvesting could be interrupted up to the weekend while we wait for the wheat to dry,” one German trader said.
“I think the market is taking a fairly relaxed view of the rain as low temperatures will probably prevent damage while wheat in the north is generally still not ripe.”
New crop standard wheat with 12 percent protein content for September delivery in Hamburg was offered for sale at 2 euros over the Paris December contract against 4 euros over on Monday, cut to reflect early-day Paris price gains and decent quality results from early German harvested areas.
Buyers were seeking 1 euro over Paris.
“Quality results from early German harvested areas are respectable,” another trader said. “Test cuttings in the big north east German grain belt have also shown good protein content, I am getting more optimistic about the crop quality this year despite the heatwave in early July.”
