EU wheat slips back to 2-week low as euro adds to export doubts
PARIS, Dec 19 (Reuters) – Euronext wheat eased on Tuesday to return to a two-week low as a sharp rise in the euro and ample offers of Russian wheat in an Egyptian tender maintained export concerns in western Europe.
March milling wheat BL2H4, the most active contract on the Paris-based Euronext, was down 0.5% at 223.00 euros ($244.74) a metric ton by 1655 GMT.
It earlier equalled Friday’s two-week low of 222.50 euros but again found chart support at that level.
Volumes on Euronext were again light, with year-end company meetings and the approach of the Christmas period keeping some participants away from their desks.
The euro rallied against a broadly weaker dollar, making European grain more expensive overseas. FRX/
Offers in Egypt’s tender were mostly for Russian wheat, which was cheaper than other origins including French and Romanian wheat.
“Russian wheat continues to dominate international purchase tenders despite the Russian export price floor and concern about the winter disruption to Black Sea logistics,” one German trader said.
While the price advantage of Russian wheat in international tenders had narrowed due to a semi-official price floor that appeared to be around $260 a ton, free on board (fob), Russian export prices in private deals remained much cheaper, traders said.
In Germany, 12% protein wheat for January delivery in Hamburg was offered for sale at a premium of about 5 euros over the Euronext March contract.
Weekly European Union data on Tuesday showed the bloc has exported almost 14 million tons of soft wheat so far in 2023/24, 14% less than a year ago.
While the gap with last season has narrowed in recent weeks, helped by the incorporation of delayed Bulgarian figures, EU exports continued to be curbed by large Russian shipments as well as a revival in Ukrainian sea trade.
$1 = 0.9112 euros)
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