Euronext wheat was little changed on Friday underpinned by firm US futures as traders assessed tepid EU exports and potential disruption from rolling train strikes in France. Uncertainty over a trade row between the United States and China, fuelled by Washington's threat on Thursday of further tariff measures, dampened sentiment, although traders said only soyabeans and to a lesser extent maize would be directly affected.
May milling wheat, the most active contract on the Paris-based Euronext exchange, was up 0.50 euro, or 0.30 percent, at 167.25 euros ($205) a tonne by 1548 GMT, after earlier matching Thursday's one-month high of 167.50 euros. Chicago wheat edged up as concerns about poor growing conditions for winter wheat in the drought-affected US Plains countered weakness in maize and soyabean prices.
In France, the focus was still on a rolling rail strike that was disrupting inland freight transport and could further weaken French exports after a disappointing season. Unions protesting against the government's rail reform plans have proposed on-off stoppages until June, a period which covers the end of the grain marketing season.
"This could be disastrous for France during this export window if its market share gets further eroded and there is a mountain of old crop going into harvest," one futures dealer said. Slow shipments have led forecasters to cut their outlook for French exports outside the European Union in recent months, although this has been partly offset by brisk demand within the EU.
Traders said supplies at ports were adequate for now, with supply tensions concentrated in rail-dependent inland markets like Brittany. In weekly crop ratings, farming agency FranceAgriMer estimated that 78 percent of French soft wheat was in good or excellent condition, unchanged from a week earlier but below a year-earlier score of 90 percent.
In Germany, cash market milling wheat premiums in Hamburg slipped in thin demand as export shipments remained modest. Standard bread wheat with 12 percent protein content for April delivery was offered for sale down 0.5 euro at 4.0 euros over Paris May.
"Attention is turning back to possible disruption to EU markets from the French railway strike and the sluggish EU exports, as shown again this week," one German trader said. "The poor export flow in turn means internal EU inventories are large." Feed wheat was again providing the main market driver, traders said. Feed wheat prices in Germany's South Oldenburg market were again over milling wheat, with April onwards delivery offered for sale unchanged at 176 euros a tonne with buyers seeking 175 euros.
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