PARIS: European wheat prices which had been trading slightly higher on Tuesday morning, turned lower when US grains futures opened lower after the New Year break.
Benchmark March milling wheat on Paris-based Euronext, was down 0.5% by 1512 GMT to 221.50 euros a metric ton. By the same time most traded wheat on the Chicago Board of Trade was down 1.7% at $6.17-1/2 a bushel.
“It’s a hesitant start of the year. Even if the trend has changed prices remain in the 220.50 - 224.50 euros range,” a French trader said.
“I think there is a lot of attention on the euro/dollar exchange rate with any fall in the euro’s value taken positively by the market,” one German trader said.
Traders also referred to heightened political risks, both in Ukraine, where Russian missile attacks hit the port of Odesa, and in the Red Sea. “Russian Black Sea grain ports are also looking very full which could raise hopes of a transfer of some shipments to the EU, but Russian wheat is starting the new year again with a clear price advantage over the west EU,” the trader said.
Initial Black Sea price lists on Tuesday were giving Russian 11.5% wheat for January shipment an FOB price lead of $10-$12 over the west EU, traders said.
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