European wheat futures firmer by new export success

European wheat futures in Paris were supported by a new export success by French wheat on Tuesday, but falling US markets in Chicago limited gains. March milling wheat, the most active contract on the Paris-based Euronext exchange, unofficially closed up 0.75 euro or 0.3 percent at 205.75 euros ($235.11) a tonne.
Egypt's state grain buyer GASC bought 360,000 tonnes of wheat in an international purchasing tender on Tuesday including 180,000 tonnes of French wheat, its first French purchase since July 2017. EU wheat markets have been hoping for weeks that rising Russian prices will bring more export sales to the west EU.
"The sale of French wheat to Egypt is welcome at a time when competition from Argentina remains stiff, particularly in Algeria," a French trader said. Competitive ocean shipping costs helped French wheat win the Egyptian tender, another trader said. French offers were also encouraged by GASC's decision to give quicker payment for wheat purchases.
But a fall in Chicago wheat of about 1 percent in early Tuesday trade limited Paris gains. "With Chicago under pressure due to the weak export inspection figures, it's hard for Matif (Euronext) to be much firmer," a trader added. In Germany, cash premiums in Hamburg were little changed as export prospects were assessed. Standard bread wheat with 12 percent protein for February delivery in Hamburg was offered for sale unchanged at 5.0 euros over Paris March.
"Rising Russian wheat prices mean that the market is hoping that export business will be transferred to the west EU," one German trader said. "But Romanian and Russian wheat was again offered in large volumes and at aggressive prices in Egypt's latest wheat purchase tender on Tuesday, so the transfer to west Europe is perhaps starting but still has a long way to go." German exports are being shipped out in larger volumes than in past months but volumes are still low compared to previous years. "The problem is that inland prices, especially for feed wheat, are sometimes higher than in ports so there is no incentive to sell for export," the trader added. Feed wheat in the South Oldenburg market for February/March delivery was offered for sale above milling wheat at around 217 euros a tonne, with buyers seeking 216 euros.