Euronext wheat futures fell on Monday as increased competition in export markets from Russia and a modest rebound in the euro helped put the market on the defensive. December milling wheat, the most active position on the Paris-based Euronext exchange, was down 0.75 euro, or 0.4%, at 177.75 euros ($195.88) per tonne at 1634 GMT.
"European markets have a weaker feel today. There is concern about falling Russian export prices which along with the stronger euro could put the breaks on new EU export sales in coming weeks," one European trader said. Russian wheat export prices fell for the second week in a row last week, making them more competitive on the global market, industry analysts said.
The euro recovered some ground on Monday against a broadly weaker dollar after earlier matching a four-week low against the greenback. The US Department of Agriculture on Friday raised its forecast for 2019/20 Russian wheat exports to 34.5 million tonnes from a previous forecast of 34 million reflecting higher than previously expected production. May feed wheat futures in London fell 1.25 pounds, or 0.8%, to 150 pounds a tonne as sterling rallied to a six-month high against the euro.
The market remained underpinned, however, by planting delays with weekend rains in many areas adding to concerns that some farmers may be forced to abandon plans to plant winter wheat and switch to spring planted crops. In Germany, cash premiums in Hamburg were stable, remaining above Paris prices on stronger German export sales in recent weeks. Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at 2.0 euros over Paris December . Buyers were offering 1.0 euros over Paris. "We have seen some hefty sales of German wheat in export markets in past weeks after Russian and other Black Sea prices rose," one German trader said. "This continues to support Hamburg as supplies are called in to load ships."
"One ship is loading about 60,000 tonnes of German wheat for Jeddah in Saudi Arabia this week. Other German sales were made to a wide range of customers in Africa and to some Middle Eastern buyers including Jordan."
Comments
Comments are closed.