PARIS: Euronext wheat gave up earlier gains to close lower on Friday as a US government crop report threw up few surprises while a lack of immediate news after a meeting between Russian authorities and exporters tempered talk of export curbs.
December wheat on Paris-based Euronext settled 1.0% down at 229.00 euros ($250.64) a metric ton, leaving the contract almost unchanged over the week.
Russia remained the focus in wheat as talk continued over possible export restrictions that might be proposed at a meeting between the agriculture ministry and grain exporters that sources said was taking place on Friday.
The ministry announced earlier a 41% increase in its wheat export duty, though this move drew little reaction as it only represented a relatively small amount in dollar terms and was partly anticipated due to a recent drop in the rouble.
The absence of any announcement before the Euronext close encouraged participants to book profits. “There were only minor changes in the USDA report, so that was a disappointing and there was no news from the Russian meeting either,” a futures dealer said.
However, after the European session, sources told Reuters that Russia’s agriculture ministry has asked exporters at the meeting to not sell wheat at below $250 per ton free on board (FOB) at international tenders.
Russia’s Grain Exporters Union, meanwhile, said in a statement that the ministry told exporters to engage in direct deals with buyers without third parties.
Chicago wheat pared its losses following the news, suggesting the Euronext market may react on Monday. The US Department of Agriculture in a monthly report nudged up its forecast of world wheat stocks while making relatively small revisions to its US corn and soybean harvest forecasts.
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