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EU wheat slips on lack of demand and fall in Chicago

EU wheat slips on lack of demand and fall in Chicago

PARIS: European wheat eased slightly on Monday due to a lack of new export demand and a fall on US markets but prices remained above the psychologically important 200 euro mark.

A stronger euro also hampered the grain’s competitiveness on world markets, weighing on prices.

Benchmark December milling wheat on Paris-based Euronext unofficially closed down 0.25 percent at 200.25 euros a tonne.

By the same time on the Chicago Board of Trade the most active wheat December was down 0.6 percent.

“Beyond a very dynamic Romanian activity and French sales in Algeria, order books remain quite empty, which weighs on exporters’ morale and prices,” consultancy Agritel said in a note.

Traders were also awaiting the release of the US Department of Agriculture (USDA) supply-demand report on Thursday.

Brokers on the cash market noted the hefty barley purchase by Saudi Arabia, the world’s largest feed barley buyer, which said on Monday it had bought 1.02 million tonnes of the grain in an international tender, predominantly from Glencore.

“The die is cast for barley,” a trader said.

In Germany, cash premiums in Hamburg were flat as exports remained sluggish and high feed wheat prices provided the main market support.

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

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

In Poland, prices were flat to firm in the past week, retaining recent high levels.

“The domestic industry is covered for nearby supplies but is still open to buy grain at low prices,” one Polish trader said. “Sales offers from farmers are very limited.”

Polish millers were offering to buy 12.5 percent protein wheat at 820-870 zloty (190-201.5 euros) a tonne for November delivery, up 10 zloty on the week. Feed mills were offering to buy feed wheat at 800-850 zloty a tonne, up 20 zloty on the week partly because of disappointing results from Poland’s maize crop.

Exporter purchase offers for 12.5 percent protein wheat for immediate delivery to ports were unchanged on the week at 870-880 zloty a tonne.

“Exporters continue loading large ships in Poland with some thought to be destined for Saudi Arabia,” one trader said.

“One vessel has just left Gdynia with 60,000 tonnes of wheat for Jeddah. Another has just berthed in Gdynia to load 60,000 tonnes of wheat thought likely to also go to Saudi Arabia. Another 30,000 tonnes is waiting off Gdynia to load wheat for a multinational export house.”

Copyright Reuters, 2018

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Source: Brecorder

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