Euronext wheat futures fall slightly

Euronext wheat futures fell slightly on Thursday, curbed by weakness in Chicago, a currency dent to export prospects and an improving harvest outlook after recent rain in Western Europe. Activity was light on Euronext, with many French market participants attending a trade gathering in southern France, traders said.
December milling wheat on Euronext settled down 0.50 euro, or 0.3 percent, at 170.00 euros a tonne. Earlier, it fell to the 169.75 euro level for the third session in a row but again held above contract's lifetime low of 169.25 euros. "There weren't many people in the market and above all not much appetite to trade," a French broker said.
"Sellers who were already very reluctant are seeing prices being eroded further, while buyers are becoming more upbeat about the harvest after the showers we've had." Rainfall has eased drought concerns in France while the most recent crop ratings from farming agency FranceAgriMer showed a slight improvement in wheat conditions. However, the dry spell along with last frost in April led Strategie Gains to lower their forecasts for European Union production of wheat and other cereals this year.
The euro hit a new six-month high against the dollar, as the US currency remained sapped by political crisis embroiling President Donald Trump, although the euro later eased. French export prospects were also clouded this week by Egypt's decision to raise protein standards in its wheat import tenders. Export demand appeared stronger for French barley, with cash market premiums rising in Rouen.
A tender announced by Saudi Arabia to purchase 1.5 million tonnes of barley, along with drought worries in Spain that could fuel feed grain imports, were supportive for French prices, traders said. In Germany, cash selling premiums in Hamburg were little changed, underpinned by demand from feed makers. Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale at a premium of 1.5 euros over the Paris December contract, buyers were seeking 0.5 euros over Paris.
"The background picture is starting to look bearish as the euro's strength is very disappointing for export prospects and the latest harvest forecasts for Germany also point to a larger crop and ample supplies in coming months," one German trader said. Germany's 2017 wheat crop will increase 1.6 percent on the year to 24.98 million tonnes, the country's association of farm cooperatives said on Thursday. Sharper price moves were seen in Euronext rapeseed futures, as they reacted to a slide in US soybeans sparked by a plunge in the Brazilian real. August rapeseed settled down 1.8 percent at 359.50 euros a tonne.