Euronext wheat futures ended flat on Thursday as support from a slight rebound in Chicago was offset by strength in the euro that kept attention on sluggish exports in Western Europe. December milling wheat on the Paris-based Euronext exchange settled unchanged on the day at 161.50 euros ($191.10) a tonne. Chicago wheat, the global price benchmark, was higher in a modest rebound after three straight falling sessions.
But a sharp rise in the euro against the dollar underscored poor export prospects for Western European wheat in the face of intense competition from Black Sea countries such as Russia. "The rise in Chicago is supportive for European wheat but the movement is being curbed by the euro-dollar rate, increasing expectations for Russian exports, and the still-weak level of EU exports," one futures dealer said.
Weekly European Union data showed soft wheat exports so far this season were 31 percent below the year-earlier level at 5.7 million tonnes, including a provisional estimate of 119,000 tonnes exported this week. Other news illustrated competition from Russia's wheat after a record harvest there. Egypt, the world's largest wheat importer, booked 230,000 tonnes of Russian wheat in a tender in which only one offer of French wheat was made.
Consultancy SovEcon upgraded its forecast for Russia's 2017/18 wheat exports to 33.9 million tonnes from 32.4 million previously. In Germany, cash premiums in Hamburg were flat, with export gloom hanging over the market. Standard bread wheat with 12 percent protein content was offered for sale unchanged at 1 euro over the Paris December contract for October delivery in Hamburg. Buyers were seeking level Paris.
"With export demand slack, there is once more interest in selling milling wheat for feed," a German trader said. Feed wheat in the South Oldenburg market was again quoted above milling wheat, offered for sale at 173 euros a tonne for October/December delivery, with buyers offering around 172 euros. "Farmers seem more interested in completing their winter sowings than selling their inventories, with an expansion of wheat area expected this autumn after rain disrupted rapeseed plantings, especially in north Germany," the trader added.