European wheat futures edged lower on Wednesday, pressured by a stronger euro that underlined a tough export context for western European wheat. Activity remained light as the market was winding down before the Christmas and New Year period, while in France year-end meetings of agricultural cooperatives kept some participants away from their desks.
March milling wheat, the most active contract on the Paris-based Euronext exchange, was down 0.75 euro, or 0.5 percent, at 160.75 euros a tonne at 1719 GMT. It continued to hold the chart support level of 160 euros that has helped keep Euronext prices in a tight range this month. The euro rose against the dollar, briefly hitting $1.19 for the first time in nearly three weeks.
"It is the rise of the euro versus the dollar which draws attention," consultancy Agritel said. "This move is reducing our competitiveness on export markets." Chicago wheat, the global benchmark, edged higher, with the weaker dollar and background worries about weather risks for US wheat crops lending support.
In Germany, cash market premiums in Hamburg were little changed as the pre-Christmas slowdown continued and exports remained slow. "Animal feed makers continue to offer the highest prices and sellers prefer to sell milling wheat for use as feed but also because of quality problems after this year's rain-damaged harvest in Germany," one trader said.
Standard bread wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 3.5 euros over Paris March. Feed wheat prices in Germany's South Oldenburg market were once more above milling wheat, with January delivery offered for sale at around 173.5 euros a tonne, with buyers at about 172 euros. "Hopes are that loadings of wheat in German ports could increase in January following the modest levels seen in the past few months," another trader said. "One ship has just sailed from Hamburg with about 25,000 tonnes of wheat for Spain and another ship is expected to start loading about 30,000 tonnes in Hamburg in coming days, possibly for Africa."
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