Euronext wheat fell to a near four-week low on a drop in Chicago futures and a pause in a Russian price rally, although physical premiums in France and Germany held steady with traders upbeat about exports. December milling wheat, the most active position on Paris-based Euronext, settled down 1.25 euros, or 0.7%, at 176.75 euros ($196.93) per tonne on Monday.
In closing trade it hit 176.50 euros, its lowest since Oct. 10, below a three-week low of 177.50 euros struck on Thursday.
Selling impetus increased with the breaching of a support zone between 177 and 178 although some dealers said the benchmark contract held next support at 176.50 euros.
Chicago wheat gave up gains from Friday as investors adjusted ahead of US government forecasts this week.
Port prices in Russia, the world's largest wheat exporter, were flat to slightly lower in the past week, suggesting a rally linked to slow farmer selling had stalled.
"Farmers in the Black Sea region are starting to release more grain while Asian buyers are turning away from these origins seen as too expensive," consultancy Agritel said.
"As a result, French wheat ... is losing its main upward price driver. To rise further, the French market will need exports to accelerate."
French port loadings have risen since last week, supported by shipments for Algeria, but some traders and analysts say France will need to capture more sales elsewhere.
European Union common wheat exports remained 50% above last season's level but the volume last week was smaller than in recent weeks, European Commission data showed.
The upturn in loading activity in France and the weaker trend in futures helped physical premiums at French ports hold steady, brokers said.
In Germany, cash premiums in Hamburg also stayed at recent firm levels amid hopes of more export sales.
"German wheat is looking attractively priced compared to Russia and the other main Black Sea exporters," one German trader said. "Iran, one of Germany's customers in past years, looks like returning to imports after a long absence, the trader said, adding there were also prospects in sub-Saharan Africa.
Comments
Comments are closed.