Euronext wheat futures fall after three-week high

Euronext wheat futures ended little changed on Friday, easing from an earlier three-week high as technical resistance countered support from adverse US weather and brisk French exports. Benchmark May milling wheat on Paris-based Euronext settled up 0.50 euro, or 0.3 percent, at 189.50 euros ($214.00) a tonne.
The contract had earlier climbed to 190.75, its highest since Feb. 27, supported by a weaker euro and strength in Chicago corn and wheat futures linked to flood damage in the US Midwest. But the Euronext benchmark stalled in the face of chart resistance at 190 euros. While flooding in the United States was being assessed for potential disruption to spring planting, crop conditions remained broadly favourable in Europe.
Crop ratings for French soft wheat were stable on the week at 85 percent good/excellent as of March 18, above the 79 percent score seen at the same stage last year, farming agency FranceAgriMer said. A surge in French exports this month continued to underpin futures. But traders said export interest was focused on the outcome of a tender this weekend by Saudi Arabia to purchase 720,000 tonnes of barley, with western European origins like French and German barley seen as in contention.
"There is hope that the EU will get part of the Saudi business with Germany getting a share but with the Black Sea also present," a German trader said. "Argentine barley is cheap but faces high shipping costs, a factor which will also hinder Australian barley." The tender is being keenly followed as an unusually long wait since Saudi state buyer SAGO's last barley purchase on Nov. 5 has depressed the international market.
On Germany's wheat market, milling premiums were stable, reflecting steady export demand, while feed wheat remained priced above milling wheat, continuing a trend seen since last summer's drought damaged fodder crops. Standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale unchanged at around 6 euros over Paris May. Feed wheat in the South Oldenburg market for April/June delivery was offered for sale unchanged at around 202.50 euros a tonne, with buyers seeking 201 euros.