Paris wheat extends gains to one-week high
Euronext wheat prices rose on Friday to a one-week high as a weaker dollar spurred further gains in Chicago and traders assessed signs of improving export demand in Europe.
March wheat BL2H4 on Paris-based Euronext, settled 1.1% up at 228.75 euros ($248.86) per metric ton.
It earlier touched a one-week high of 229.25 euros, as it moved further from Tuesday’s near two-year low of 221.25 euros, though it faced chart resistance near 230 euros.
Chicago wheat Wv1 rose more sharply as the dollar fell after comments by Federal Reserve Chair Jerome Powell suggested the U.S. central bank is likely done with its rate hiking cycle.
Recent price falls and weather disruption to Black Sea shipments have stirred demand for western European wheat, including in Morocco, according to traders.
Concerns about delays to some French wheat shipments for China have also eased.
A first French wheat cargo for China this season is due to load in coming days in the ports of Rouen and La Pallice, shipping data showed.
Nord Cereales, which runs the grain terminal at Dunkirk, said it would load wheat for China as planned this month, with about 250,000 tons to be shipped.
However, cheaper Russian grain and expanding traffic in a war-time corridor from Ukraine remained a curb on prices.
“Cheap Russian prices are still being offered on Friday, although now not with the huge price lead seen in past weeks,” a German trader said.
A shipment of 30,000 tons of Russian 11.5% protein milling wheat was offered on Friday around $237 fob Black Sea for late December/early January shipment, he said.
“The Ukrainian shipping channel continues to develop strongly with very low prices also available for those willing to accept the risk,” the trader added.
In France, traders were watching to see if icy weather this weekend creates problems after heavy rain.
Farmers made little progress towards finishing sowing last week while the condition of crops continued to decline, data from farm office FranceAgriMer showed.
In Germany, 12% protein wheat for December/January delivery in Hamburg was offered for sale at a premium of about 5 euros over the Euronext March contract.
Traders said farmers in north Germany were unwilling wheat sellers at current levels and more interested in selling rapeseed.
February rapeseed COMG4 on Euronext dropped 2.1% to 441.25 euros a ton, retreating from Thursday’s near two-month high amid broad losses in oilseed markets.
Source: Reuters (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Emelia Sithole-Matarise)
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