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EU wheat steadies at the end of volatile week

EU wheat steadies at the end of volatile week PARIS: European wheat was unchanged on Friday, closing a week marked by high volatility and low activity, with many brokers away for public holidays in several European countries including France.

Benchmark December milling wheat on Paris-based Euronext closed at 200.75 euros ($228.49) a tonne, unchanged from Thursday, when it had gained 1.1 percent.

It rose as high as 203.75 euros on Monday but hit a new six-week low of 197.75 euros on Wednesday.

European wheat had been buoyed on Thursday by a rise in Chicago on hopes that smaller harvests in key exporting countries could transfer world demand to the United States.

Net wheat export sales data released on Thursday topped trade expectations at 582,545 tonnes, including a sale to Egypt, one of the world’s largest wheat importers.

The weak euro against the dollar also supported euro-denominated wheat.

In Germany, cash premiums in Hamburg were kept flat by sluggish demand.

Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December.

“Demand remains poor because of Germany’s export performance, which is very bad compared with past years,” one German trader said. “The question is how long can Russia keep up its high volume of export shipments after its own smaller crop this year and when more demand will be received by west Europe.”

The trader added that Russian supplies near export ports could become sold out if the wheat has to be transported for longer distances from inland stocks to ports.

“This could gradually raise Russian export prices,” the trader said, adding that market support was also coming from high prices for feed wheat as farmers need to buy more feeds to replace hay and straw lost because of the summer drought.

Feed wheat in Germany’s South Oldenburg market for November/December delivery was offered for sale well over milling wheat, at about 215 euros a tonne with buyers seeking 213 euros.

Copyright Reuters, 2018

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Source: Brecorder

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