European wheat prices edged higher on Thursday, supported by healthy EU export volumes, a bounce in Chicago and caution about crops entering the crucial spring growth period. The May milling wheat, the benchmark on Euronext's main No. 2 wheat contract, closed 1.50 euros or up 0.8 percent at 185.00 euros a tonne. The EU reported 679,000 tonnes of weekly export licences for soft wheat, keeping the bloc on course to beat last season's record.
"We have a very busy export programme with a large ship lineup in German ports," one German trader said. "The euro remains at relatively low levels, French supplies remain competitive for standard qualities and German supplies are competitive for higher qualities." "This is shown by the good volume of EU wheat export licences awarded this week."
German cash wheat premiums in Hamburg were firm with a large wheat export programme in German ports continuing to underpin. Standard wheat with 12 percent protein content for delivery in Hamburg in May was offered for sale at 3 euros over the Paris May contract against 2.5 euros over on Wednesday. Buyers were offering an unchanged 1 euro over Paris.
In Hamburg alone ships are loading or scheduled to load 120,000 tonnes of wheat for Saudi Arabia, 55,000 tonnes for Algeria, 31,000 tonnes for Morocco and 25,000 tonnes for Israel, sources said. A ship is loading 60,000 tonnes of wheat for Iran in Rostock and another 30,000 tonnes to Iran is to be shipped from the port of Lubeck.
December milling wheat, the new-crop benchmark on Euronext, closed up 1.00 euro or 0.5 percent at 186.50 euros. Wheat markets have been pressured in the past week by the return of rain in parched US wheat belts as well as broadly favourable conditions in the European Union and Black Sea region.
But dryness in northern France was a background concern and traders were watching to see if showers forecast from this weekend would reach the wheat belts. "It's only April 23, there are still another two months of weather risks before the harvest. The outlook for the crop is good but it isn't in the silos yet," a Euronext dealer said. "We're going to be looking to see what the rain this weekend is like."
Comments
Comments are closed.