PARIS: Euronext wheat ended slightly firmer on Monday after reaching its lowest level since 2021 during a choppy session as traders assessed mixed signs regarding supply from the Black Sea region.
September wheat, the most active contract on the Paris-based Euronext exchange, settled 0.1% up at 243.75 euros ($268.88) a tonne.
It earlier eased to 241.50 euros, the weakest second-month price since September 2021, to extend a steep fall from Friday.
Renewed warnings from Russia that it could pull out of a wartime agreement enabling maritime exports of grain from Ukraine maintained a risk to Black Sea trade, though large Russian supplies were capping prices. “Old-crop supply remains pretty heavy in the eyes of the market,” a futures dealer said. “Russian stocks will take some time to be absorbed.” There were signs Russia is trying to step up shipments to clear stocks, after a draft regulation proposed unused export quotas be reallocated to firms that have filled theirs.
“There is talk Russian exporters offered wheat for sale in past days in export markets at between $265 to $270 a tonne FOB, below the price floor of $275 a tonne FOB unofficially set for Russian exporters,” a German trader said.
Moves to maintain Ukrainian exports via the European Union after opposition from eastern EU countries also were tempering Black Sea supply concerns.
The slight recovery on Euronext was led by May wheat , which ended 1% higher at 245.00 euros after earlier setting the lowest level for a front-month contract since September 2021 at 240.50 euros.
May futures, which expire on May 10, attracted some interest after the spread versus September turned negative, dealers said.
Rainfall in the past month has benefited cropland in much of the EU, but Spain and northern Italy remain affected by drought, the EU’s crop monitoring service said.
Traders were monitoring cold weather forecast this week in central Europe, though possible frosts were not expected to be severe enough to damage crops.
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