Western European wheat markets were little changed on Thursday as recent export impetus subsided in a session marked by a widening of the premium for CME's futures over Euronext's established benchmark. December milling wheat on Paris-based Euronext settled down 0.25 euro at 162.50 euros per tonne, as it continued to consolidate below a seven-week high of 164.50 euros touched earlier this week.
CME Group's December EU wheat ended 1.00 higher at 170.50 euros a tonne, after earlier reaching 171.00 euros, a new high since the launch of CME's futures on September 12. Export activity in France, normally the European Union's biggest wheat exporter, remained light and comparatively stronger domestic demand was supporting CME's prices. "CME's delivery structure with inland silos plus demand from industrial users are supporting its futures, whereas Euronext is reflecting weak export activity," a futures dealer said.
Euronext announced on Thursday a fee discount scheme worth 0.35 euro per lot from November 1 for all new proprietary traders using its commodity futures and options. European Union data showed the bloc awarded 209,000 tonnes of soft wheat export licences this week, the smallest volume since the opening week of the July-June season. Strategie Grains, meanwhile, cut again its monthly forecast for EU soft wheat exports this season, citing quality issues in France and the Baltic countries after adverse crop weather this year.
The analyst firm also gave initial estimates for cereal sowing for next year's harvest, projecting a stable soft wheat area, supported by smaller gains for rapeseed than expected. In Germany, cash market premiums in Hamburg were little changed after being supported in recent days by expectations of possible German sales to Algeria and Saudi Arabia.
"Port activity is currently pretty quiet but there are hopes we will see a larger export loading lineup of ships in November and December if some of the recent purchases by Saudi Arabia and Algeria are sourced in Germany as hoped," one trader said. Germany had also seen some recent export shipments to unusual destinations like Turkey and Lebanon, the trader added.
Standard wheat with 12 percent protein content for October delivery in Hamburg was offered for sale unchanged at 2 euros over the Paris December contract. Buyers were seeking 0.5 euro over. There was little reaction on western European markets to a tender being held by Egypt, the world's biggest wheat buyer, with offers showing Black Sea origins continuing to dominate the market.