Front-month wheat futures on Euronext extended gains on Friday to a two-week high, bolstered by brisk export activity in France, while new-crop prices eased amid favourable harvest prospects. A firm trend in Chicago, where wheat has been rebounding from a 13-month low at the start of the week, also lent support to Euronext.
Benchmark May milling wheat, the last contract for 2018 crop on Paris-based Euronext, was up 1.25 euros, or 0.7 percent, at 189.00 euros ($214.04) a tonne by 1615 GMT. It earlier rose to 189.50 euros, its highest since Feb. 28, pulling further away from Monday's nine-month low of 181 euros. New-crop September was down 1.25 euro at 177.00 euros.
Dealers noted that the premium for old-crop over new-crop futures had halved from around 20 euros in early February and current export demand made it logical for the spread to widen again. In France, a sharp upgrade to forecast wheat exports outside the European Union by farming agency FranceAgriMer, a tender purchase by main French wheat buyer Algeria and an increasing lineup of ship loadings at French ports have all boosted export sentiment this week.
"Export demand is driving the market," a French physical broker said. "It's proving hard to get hold of grain. Sellers are in no hurry as they've seen all the export demand coming." Farming agency FranceAgriMer said that 85 percent of French soft wheat being grown for this year's harvest was in good or excellent condition.
In Germany, standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale at 6.5 euros over Paris May, down from 7 euros over on Thursday as buyers resisted the overnight rise in Paris. In Poland, prices fell in the past week. "Poland has seen unexpected imports of barley and wheat from east Germany by truck which have taken away some demand from our millers and feed makers," one Polish trader said.
Polish milling wheat prices fell by around 20 zloty a tonne in the last week to between 780-830 zloty (181-193 euros) a tonne for March delivery. Feed wheat for March delivery also fell about 20 zloty to between 760-810 zloty a tonne. "Some prices are only nominal as sellers are unwilling to deal at current low prices," the trader said.
Exporters were offering to buy 12.5 percent protein wheat for April delivery at around 805 zloty a tonne, down about 25 zloty on the week. One vessel with 22,000 tonnes of wheat left the port of Szczecin for Izmir in Turkey but otherwise port loading is very quiet and export demand slack, he said.
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