PARIS: Euronext wheat futures touched one-week lows on Monday, curbed by a steady euro and an earlier fall in Chicago, while physical premiums held firm after import tenders sustained international demand.
Front-month December milling wheat on Euronext settled down 0.75 euro, or 0.4%, at 209.25 euros ($247.75) a tonne, after earlier falling to its lowest since Nov. 9 at 208.25 euros.
March futures, the most active position on Euronext, ended down 0.75 euro at 209.00 euros, after an earlier one-week low at 207.75 euros.
Chicago grain futures fell before steadying in hesitant trading following a one-month low on Friday.
“Bearish spillover from Chicago and supply pressure from Australia’s harvest are countering international demand that is still very strong,” consultancy Agritel said.
Competitive prices for what is expected to be a bumper Australian crop, along with a volume seen as adequate for Russia’s proposed end-of-season export quota, have eased immediate investor concerns about tight wheat supplies.
An Algerian import purchase last Thursday was expected to be filled with European Union origins, including French and German wheat, traders said.
German traders also anticipated further sales to other destinations.
“I think Germany has a good chance of supplying part of Algeria’s 600,000 tonne wheat purchase last week while there is a real chance Pakistan’s tender for 400,000 tonnes closing later this week could also be sourced at least partly in Germany,” one German trader said.
Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale unchanged at about 3.5 euros over Paris December. Buyers were seeking around 2.5 euros over Paris.
French export premiums were higher.
EU data showed soft wheat exports from the bloc and Britain this season had reached 8.5 million tonnes. That was down 22% versus a year ago, although the European Commission said it lacked three days of data for last week following a technical problem.—Reuters
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