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Thursday, December 9, 2021

EU wheat falls on strong euro but finds technical support

EU wheat falls on strong euro but finds technical supportPARIS: European wheat fell for a fourth consecutive session on Tuesday, pressured by the euro’s gains to the dollar, but the commodity’s fall was limited by technical elements, traders said.

Benchmark December milling wheat on Paris-based Euronext unofficially closed 0.50 percent lower at 198.00 euros a tonne.

It filled a technical chart gap, dating from late July, of between 198.00 and 198.25 euros a tonne, which traders said was acting as a key support.

The contract had fallen below 200 euros a tonne for the first time in a month on Monday, pressured by a fall on US markets and a stronger euro making the grain more expensive on world markets.

“There is little or no new bullish element but at the same time fundamentally the global wheat balance remains tight,” a Euronext trader said.

The European market received little market orientation from across the Atlantic with the most active wheat contract on the Chicago Board of Trade 0.3 percent higher.

Egypt’s state-buyer GASC bought 350,000 tonnes of wheat for Oct 11-20 shipment in a tender on Tuesday.

The euro remained firm above $1.17, as the dollar stuck to a four-week low on Tuesday, pressured by investors unwinding their safe-haven bets on the greenback after a US-Mexico trade deal was reached on Monday.

Copyright Reuters, 2018

Source: Brecorder

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