PARIS: Euronext wheat hit fresh multi-month lows on Friday, pressured by export concerns and improving northern hemisphere crop weather, though prices pared their losses by the close.
May wheat on Euronext settled 0.2% up at 218.75 euros a metric ton, steadying after an earlier one-year low of 215.00 euros. December wheat, widely used as a benchmark for new-crop prices, ended down 0.3% at 225.25 euros, after reaching its lowest in nearly four months at 222.50 euros.
Traders were also looking ahead to US planting and stocks data on Monday and sweeping US tariffs planned from Wednesday encouraged prices to consolidate. Chicago wheat extended losses to its weakest level in eight months.
Forecast rain in the US and the Black Sea region has eased worries about crop stress in major wheat belts. “At this point, it seems that very little weather risk premium is priced in, with funds maintaining their large net short positions,” CM Navigator analyst Donatas Jankauskas said in a note.
“But as always, weather will ultimately have the final say.” In Europe, a rebound in the euro against the dollar and sparse international demand have disappointed traders. “The stronger euro is bad news for export prospects as French stocks in my view need to be reduced before the new harvest and the West EU does have a price advantage over the Black Sea after this week’s Euronext fall,” a German trader said. The Eid holiday in Muslim countries next week was expected to curb import activity in major wheat markets in North Africa and the Middle East.
Russian 11.5% wheat for April/May delivery rose about $2 a ton to $244-$247 a ton FOB, with French prices about $4-$6 a ton cheaper depending on Euronext moves, traders said. Ukrainian, Romanian and Bulgarian wheat was about $3-$5 cheaper than Russian but still currently above west EU prices, traders said.
Ukrainian wheat, including new crop, was meanwhile offered at low prices inside the EU, traders said. Ukrainian 11% protein milling wheat was quoted at 243-245 euros a ton including prompt delivery to northern Italy. Ukrainian new crop feed wheat was around 211-213 euros a ton including delivery to northern Germany.
In France, soft wheat crop ratings held steady last week and remained above last year’s rain-hit levels, data from farm office FranceAgriMer showed.
Comments