PARIS: European wheat prices rebounded slightly on Monday after a sharp fall on Friday, pulled up by a strong start to the week in Chicago and firm prices in Russia, traders said.
May milling wheat on Paris-based Euronext, was 0.6 percent higher by 1707 GMT at 165.75 euros a tonne.
“The gap between French and German wheat with Russian wheat going to Morocco and West Africa is shrinking,” one trader said.
Russian wheat prices rose last week, supported by strong international markets, coupled with seasonally lower supply from Black Sea competitor Ukraine and solid demand from Moscow’s traditional buyers.
The market is keenly awaiting a US Department of Agriculture world supply and demand report on Thursday.
For the new crop, sellers remained cautious.
The arrival of mild weather relieved concerns of frost damage but two weeks of rain forecast could delay spring crop sowings and field work.
On the Chicago Board of Trade, wheat was 1.3 percent higher, as drought in the US plains underpinned prices.
In Germany, wheat cash market premiums in Hamburg were slightly firmer to compensate for Friday’s fall in Paris, with traders relieved that warmer weather has arrived in Germany.
Standard bread wheat with 12 percent protein content for March delivery was offered for sale up 0.5 euro at 3 euros over Paris May.
“Temperatures move up as forecast over the weekend and the frosts of minus 10 degrees and more we saw last week are hopefully over,” one German trader said. “Frosts of only a couple of degrees under freezing are expected for the rest of this week which would not be a threat.”
“There is optimism that wheat was able to survive the frosts last week without damage but we will not know for sure until the spring.”
In Poland, prices rose in the past week partly on fears about winterkill after bitterly cold weather with frosts as low as minus 17 to minus 20 degrees Celsius.
Purchase offers by Polish millers rose 10 zloty on the week to 640-670 zloty (152.7-159.8 euros) a tonne for 12.5 percent protein wheat for March delivery. Feed mills prices are on the same level for feed wheat.
“Very cold weather in the whole of Poland during last 7-8 days with temperatures as low as minus 20 degrees could have generated damage,” one Polish trader said.
“There was a lack of snow cover in parts of the country and winterkill looks likely in such areas.”
Poland’s exports remained slack.
Exporter purchase offers for 12.5 percent protein wheat rose 10 zloty on the week to between 675-680 zloty a tonne for March delivery to ports.
Source: Brecorder.com
