EU wheat steadies as rainfall continues in France
European wheat started the week higher with renewed concern about the impact of lasting rainfall in France, the European Union’s largest crop grower, which prompted severe flooding in the northern part of the country.
Benchmark December milling wheat BL2Z3 on Paris-based Euronext was up 0.5% by 1700 GMT to 233.50 euros ($249.80) a metric ton.
“The excessive and sometimes record levels of water on the English Channel and Atlantic seaboards have had serious consequences,” Agritel consultancy said.
French farmers had sown 67% of the expected soft wheat area for next year’s harvest by Nov. 6, only 6% point above the previous week and well behind the 91% sown by the same stage in 2022, farm office FranceAgriMer said on Friday.
Days of heavy rains in northern France have caused local rivers to overflow and flood houses, farms and fields, since last week.
In contrast, dry weather continued in the Iberian peninsula with virtually no rain expected in the next two weeks in Spain.
European traders were also monitoring this week’s unofficial minimum price for Russian wheat set by the government to limit export.
Russian wheat export prices rose for the second week in a row with 12.5% protein Russian wheat for free-on-board (FOB) delivery in late December at $230 per ton last week, up from $226 in the previous week, Russia’s IKAR agriculture consultancy reported.
“Russian wheat was again offered repeatedly at $230 a ton FOB on Monday and it will be a tough proposition for EU wheat to win any purchase tenders at this level,” a German trader said.
“Morocco, which has been buying a lot of EU wheat recently, looks like among the best nearby hope for German sales.”
Two ships are currently loading a total 40,000 tons of German wheat for Morocco, while another is loading 30,000 tons for Guinea, traders said.
Standard 12% protein wheat for November delivery in Hamburg was offered for sale at a premium of about 3 euros over the Euronext December BL2Z3 contract.
Source Link: https://www.hellenicshippingnews.com/eu-wheat-steadies-as-rainfall-continues-in-france/
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