European wheat futures little changed

European wheat futures were little changed by the close on Thursday as the market weighed a sharp fall in the euro against weakness on the US market and disappointment at French wheat missing out again in a tender from top importer Egypt. December milling wheat, the benchmark on the Paris-based Euronext market, settled 0.25 euros, or 0.1 percent, higher at 173.75 euros a tonne.
The contract added more than 1 percent earlier in the day as the euro dropped and commodities and equities rallied after investors cheered comments by a US Federal Reserve official suggesting an interest rate rise was unlikely in September. European wheat had been under pressure from market turmoil linked to fears about Chinese growth, which knocked backed commodity markets and bolstered the euro.
"The market gained ground at the start of the session thanks to euro and with the good mood on financial markets," one futures dealer said. "It then came under pressure from the Egyptian tender which showed that French wheat is still not competitive enough." Egypt's government buyer bought 60,000 tonnes of Russian wheat in a tender in which French wheat remained more expensive than Russian and Ukrainian origins, despite the euro's retreat against the dollar.
European Union data showed the volume of soft wheat export licences awarded so far this season continued to trail the year-earlier level, after 277,000 tonnes were cleared this week. The European market also remained curbed by large supply. Growers group AGPB said this summer's French soft wheat harvests would exceed 40 million tonnes, adding to estimates calling for a record volume.
In Russia, consultancy SovEcon increased its forecast for Russia's grain crop to 101 million tonnes, which would be the third-largest in the post-Soviet era. The International Grains Council forecast record global grain supplies in 2015/16. German cash premiums in Hamburg dipped on moderate selling after early-day rises in Paris, with harvest supply and export competition hanging over the market.
New-crop standard wheat with 12 percent protein content for September delivery in Hamburg was offered for sale at even to the Paris December contract against 0.5 euro over on Wednesday. Buyers were seeking 1 euro under Paris. "German wheat does not look competitive in export markets as recent tender news shows," one German trader said. "The British harvest also appears to be pretty good and we are seeing speculation that British feed wheat could soon be sold into north Germany."