Benchmark European wheat futures slipped to a contract low on Friday, sapped by a rally in the euro and a sharp fall for Chicago wheat after the Thanksgiving holiday. March milling wheat, the most active position on Paris-based Euronext, settled down 1 euro, or 0.6 percent, at a new contract low of 161.00 euros ($192.04) a tonne. "It's Black Friday on the market with discounts in wheat," a futures dealer said. "Euronext had the euro and Chicago going against it."
The euro climbed to its highest against the dollar in three months, supported by positive economic indicators in Europe. The stronger euro makes grain from exporting countries like France and Germany more expensive, just as they are struggling to secure overseas sales in the face of competition from cheaper suppliers like Russia.
Chicago wheat futures sank to contract lows as disappointing export data and chart-based selling weighed on prices as the US market resumed trading for a shortened session following Thursday's closure for Thanksgiving. In Germany, cash premiums in Hamburg were slightly firmer on moderate buying interest, but with high inland prices for animal feed markets continuing to curb exports.
"There are some export inquiries for German wheat following heavy recent sales by Lithuania and Latvia and tight supplies following the poor crop in Poland," one German trader said. "But the unusually inverted market, with German inland prices higher than in ports, is making it tough to gather export supplies."
Standard bread wheat with 12 percent protein content was offered for sale at 3.25 to 3.5 euros over the Paris December contract for November delivery in Hamburg against 3 euros over on Thursday. Feed wheat prices Germany's South Oldenburg market were once more above milling wheat, with December delivery offered at around 175.5 euros a tonne, with buyers around 174.5 euros.
In France, there have also been signs of a pick-up in demand this week, with physical premiums rising. Port data also showed another vessel was due to load wheat for Morocco, confirming that France was claiming significant sales at the start of Morocco's annual import window. French farmers had almost finished sowing soft wheat for next year's harvest, and nearly all emerged crops were in good condition, weekly data from farm office FranceAgriMer showed.