Euronext wheat rises sharply on weaker euro

Euronext wheat rose sharply on Monday, led by spot futures as a weaker euro and latest tenders by importing countries put attention back on brisk overseas demand and potential supply snags during the coronavirus crisis.
Dry weather in much of Europe and the Black Sea region was also supporting prices by raising some early concerns about this summer's harvest, traders said.
May milling wheat futures on Paris-based Euronext settled up 4.25 euros, or 2.2%, at 195.25 euros ($210.83) a tonne, after rising to 195.75 euros in late trading.
Activity by importing countries resumed on Monday, with Jordan buying 120,000 tonnes of wheat, Turkey issuing a tender to purchase 250,000 tonnes, and Saudi Arabia's state grain buyer calling on Saudi investors abroad to import 355,000 tonnes into the kingdom.
Traders meanwhile expected Egypt and Algeria to return to the market after unsuccessful attempts to hold tenders last week.
"There are some good tenders out there with Turkey, and maybe Egypt will need to buy more," a futures dealer said.
Weekly data showed soft wheat exports from the European Union and Britain had reached 24.78 million tonnes, up 66% from a year earlier.
French soft wheat exports outside the EU last month reached 1.63 million tonnes, the highest for March in at least 10 years and the biggest monthly volume so far this season, an initial estimate based on Refinitiv loading data showed.
New-crop December futures settled up 2.25 euros at 189.75 euros after testing the 190 threshold.
Parts of France saw showers on Monday but weather forecasts remained generally dry for the coming days across Europe, including in top wheat exporter Russia.
"Let's remember that Russia is the only northern hemisphere exporter to see its wheat crop area increase for the 2020 harvest, so the possibility of balanced wheat supply rests with it," consultancy Agritel said in a note.
In Germany, standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at around 4.5 euros over the Paris May contract. Buyers were offering around 3.5 euros over Paris.
"Wheat continues to flow out of German ports and supplies are being called up to complete ship loadings," one German trader said.
"If the euro holds below $1.10 and Russian prices remain firm the export outlook is positive."