European wheat futures ended the trading year on Friday showing a small annual decline after pressure from record global supply was cushioned by a weaker euro and a poor French harvest. Front-month March milling wheat on the Paris-based Euronext exchange settled unchanged on the day at 168.00 euros a tonne in thin volumes.
This left spot prices on Euronext down 3 percent compared with the end of 2015.
That was smaller than the 13 percent loss being shown by Chicago wheat, the global price benchmark.
Like the US market, however, Euronext was showing a fourth consecutive annual decline.
"The prevailing feature of 2016 was large world-wide production, with the notable exception of France," said Gautier Le Molgat of consultancy Agritel.
"The European market has got back close to its levels from the start of the year, supported by the swing in the euro-dollar rate since the election of Donald Trump."
The euro fell to a near 14-year low against the dollar this month in a broad rally in the US currency.
A weaker euro makes grain priced in the currency cheaper in dollar-denominated international commodity markets.
The worst French harvest in 30 years has also underpinned European prices. France, usually the European Union's biggest wheat exporter, has been sidelined from some overseas markets and not needed to compete head-on with cheaper export origins such as Russia or Ukraine.
However, projections for record global wheat and cereal supplies this season were keeping a lid on prices.
"Sentiment in grains remains bearish and no one is really calling for a bullish trend in the first quarter of next year," one futures dealer said.
"Big Australian and Argentine crops are arriving on the market while competition from the Black Sea region is going to remain stiff."
Traders said that exchange rates could be influential next year in the absence of significant weather problems affecting harvests.
The euro extended a recovery against the dollar on Friday, though it came off an earlier two-week high hit during a brief overnight surge.
In Germany, standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 4.5 euros over the Paris March contract. Buyers were seeking an unchanged 3.5 euros over.
Activity is expected to resume gradually next week after the new year holiday.
Rapeseed futures on Euronext posted an annual rise, supported by tight supply after a poor EU harvest and broad gains in oilseed markets such as soybeans and palm oil.
Front-month rapeseed settled marginally lower on the day at 408.50 euros a tonne, leaving it 9 percent above the level seen a year ago.
The less liquid maize futures on Euronext also rose over the year, after the smallest French harvest in 26 years reduced supply in western Europe and led the market there to diverge from weaker US prices.
Spot maize fell slightly on Friday to settle at 166.00 euros, up almost 15 percent compared with the end of 2015.
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