Euronext wheat futures slightly lower

Euronext wheat futures ended slightly lower on Friday, as a rebound from a six-month low petered out while traders awaited further developments over the coronavirus pandemic that has sparked panic in financial markets. Benchmark May milling wheat on Paris-based Euronext settled down 0.25 euro, or 0.1%, at 177.50 euros ($196.78) a tonne.

It earlier rose to a one-week high of 180.50 euros as a slide in the euro against the dollar and a broad bounce in markets helped the contract stage a recovery from Thursday's six-month low of 174.25 euros.

But it ran into chart resistance around 180 euros as financial markets gave back some of their earlier gains as reports that US President Donald Trump plans to declare a national emergency threw attention back on disruption from the fast-spreading coronavirus.

"There wasn't too much reason for wheat to go much lower," Nathan Cordier of consultancy Agritel said. "The Algerian purchase showed there is still export demand."

Algeria is thought to have bought around 680,000 tonnes of milling wheat in a tender on Wednesday, with most of the grain expected to be sourced from France, traders said. The sharp pullback in the euro against the dollar has also boosted the competitiveness of western European grain.

Weekly data from farm office FranceAgriMer showed the condition of French soft wheat crops declined slightly last week, with 63% of crops rated good or excellent by March 9 against 64% a week earlier and 85% a year ago.

Heavy rain in the past month, which has also hampered spring barley drilling, has raised concern about damage to wheat that endured soggy sowing conditions in autumn, although drier weather in the week ahead may improve field conditions.

Rapeseed on Euronext fell again as oilseed markets that are partly reliant on biofuel demand remained dented by a plunge in crude oil prices this week. May rapeseed futures shed as much as 9 euros to hit a new life-of-contract low of 347.75 euros, which also marked the lowest front-month price since June 2018.

They later pared losses to settle down 4.25 euros, or 1.2%, at 352.50 euros a tonne, holding above the 350 euro chart threshold.

A fire broke out on Friday at one of two biodiesel units at an oilseed processing factory in Rouen, northern France, the operator Saipol said, adding that there were no injuries and the fire was brought under control. The biodiesel units at the site each have an annual production capacity of around 250,000 tonnes, Saipol said.