Euronext wheat futures ticked higher on Thursday, helped by a sharp drop in the euro, but lacked momentum to break out of their recent trading range, traders said. March milling wheat, the most active contract on Paris-based Euronext, was up 0.50 euro, or 0.3 percent, at 170.00 euros a tonne by 1707 GMT. The euro fell against the dollar as the US currency rebounded from a seven-week low against a range of currencies.
Euronext earlier drew support from stronger than expected US weekly export sales, which pushed Chicago futures higher before they turned lower again. "The market is not really in the mood to outperform, we're holding in the same range," a French cash broker said.
"The market might not come back to life until the end of winter when we'll be able to assess any winter damage to crops - especially in the eastern EU - and the impact of low rainfall."
The lack of immediate weather concerns has left wheat markets capped by a large global surplus.
In exports, traders were awaiting the results of an Egyptian tender, in which offers showed Russian wheat dominating.
Weekly European Union data showed the bloc had exported 13.9 million tonnes of soft wheat by January 24, down 7 percent from a year earlier.
The EU also awarded this week 83,596 tonnes of Ukrainian wheat imports under an annual tariff-free quota.
In Germany, cash market premiums in Hamburg were little changed in subdued trading.
Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris March contract, buyers were seeking 4 euros over.
"The weaker euro was good news but I think we need to see the euro make a sustained break below $1.06 to really kick start new export sales."
"The low water on the Rhine and other rivers continues to cause logistics problems, with loads more expensive to deliver as they have to be moved by more than one vessel or transferred to road trucks."
Comments
Comments are closed.