EU wheat subdued, sluggish exports weigh

30 Sep, 2018

Western European wheat prices were little changed on Thursday, capped by lacklustre export demand and a hesitant trend in Chicago ahead of widely followed US grain stocks data. On the Paris-based Euronext futures market, December milling wheat settled 0.50 euro, or 0.25 percent, lower at 200.75 euros ($234.44) a tonne. It earlier fell to its lowest in over a week at 200.00 euros but held that psychological chart threshold.
Chicago wheat, the global benchmark, edged lower as grain markets looked ahead to the US Department of Agriculture's quarterly stocks report on Friday. Wheat markets have rallied this year as adverse weather has reduced production in several major exporting countries. But brisk Russian exports and slow short-term demand for western European wheat have curbed momentum. In France, physical premiums at ports for nearby delivery continued to decline.
"French wheat isn't really competitive in any export markets," one trader said. French shipments have been heavily dependent on Algeria this season, its main overseas market, with limited sales elsewhere. In Germany, exports remained at a low level following the country's poor harvest this summer.
"One ship is currently loading 65,500 tonnes of wheat for Saudi Arabia in Germany but this is not enough to excite the market," one German trader said. Standard bread wheat with 12 percent protein for October delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December.
Feed wheat in Germany's South Oldenburg market for October/December delivery was offered for sale well over milling wheat at around 215 euros a tonne, with buyers seeking 213 euros. However, traders expect large import purchases of feed wheat and maize to arrive in larger north German ports in coming weeks, reducing demand for local feed wheat.

Read Comments