PARIS: Euronext wheat futures eased on Monday to their lowest in almost three weeks as tepid export activity and fresh losses in Chicago kept the European market under pressure.
But a weaker euro, chart support at the psychological 200 euro level and the prospect of tightening global supplies this season all underpinned prices.
December milling wheat on Paris-based Euronext settled 1 euro down at 200.25 euros, a session low and its weakest level since Oct. 2.
“European wheat export figures are weak and loadings at French ports have slowed sharply in October,” consultancy Agritel said in a note.
“(But) from December-January French wheat looks competitive for export and cheaper than Russian wheat, which should help it to re-enter sub-Saharan Africa and Morocco.”
Weekly European Union data showed that EU soft wheat exports in the 2018/19 are running 23 percent below last season’s level at 5 million tonnes.
A tender to be held on Tuesday by Algeria, France’s main overseas market, will provide an opportunity for fresh export sales, though traders said cheaper Argentine wheat could be in contention.
Dry weather in Europe was hampering sowing of winter cereals, though the main risk is to rapeseed, the EU’s crop monitoring service said.
In Germany, standard bread wheat with 12 percent protein for October delivery in Hamburg was offered for sale unchanged at 2 euros over Paris December.
Very low water levels on the Rhine and other rivers continues to make deliveries difficult. Barge shipments from eastern France to northern Europe are also effected, leading to several loadings being scheduled in southwest France to transport maize by sea to the Benelux region, traders said.
In Poland, prices rose in the past week on slow selling by farmers and healthy export demand.
Flour mills raised purchase offers by about 20 zloty in the past week to 800-860 zloty a tonne (214-230 euros) for 12.5 percent protein wheat for October delivery to mills.
Exporter prices rose by 30 zloty on the week to 870-880 zloty a tonne.
“Poland’s exports are surprisingly active in view of the heavy competition from Russia and other Black Sea suppliers,” one Polish trader said.
Two large ships loaded recently with wheat for Saudi Arabia, one in Gdynia and one in Swinoujscie, and another panamax vessel is due to call at Gdynia in the next week to load for Saudi Arabia, the trader said.
Feed wheat, however, dropped by 10 zloty to 760-820 zloty a tonne as buyers turned to maize, the harvest of which is progressing quickly with good yields.
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Source: Brecorder
