EU wheat drops further from its highs as Black Sea jitters lessen
Euronext wheat fell for a second consecutive day on Friday. It was further down from its three-month highs, as traders took profits and concerns about tight Black Sea supplies subsided.
December wheat traded on Paris’ Euronext closed 1.5% lower at 228.75 euro ($250.53) per metric ton. This is a drop from the peak price of 235.00 euro reached Wednesday.
The contract has increased by 3.5% in the last week.
Chicago wheat also fell for a second day, further pressured by a rising dollar after stronger than expected monthly jobs data.
The wheat markets rose this week, as a drought in Russia affected sowing and talk of possible restrictions by Moscow fueled doubts about Black Sea export supplies.
Prices were cooled by the news that Turkey would only ease slightly a wheat import restriction that lasts until Oct. 15.
The mills’ association in Turkey said that they were seeking to relax the ban. However, the Turkish trade ministry stated that no decision has been made yet.
One German trader stated, “I don’t think there are enough bullish stories today to keep the upward momentum going with Russian wheat still being cheap and moving in large quantities into export markets.”
The trader stated that “It appears as though Turkey will continue to have a restrictive system, and this would not mean that the floodgates for imports were being opened.”
Egyptian plans to increase the use of corn or sorghum for state-subsided bread cooled down reaction to reports that it had agreed a large deal on Black Sea wheat imports.
Saudi Arabia’s import tender drew only a modest response due to the low volume requested and the expectation that Russian products would dominate.
The price of Russian 12.5% protein wheat for shipment to the Black Sea in October was quoted on Friday at $225-$232 per ton FOB. This is up from $217-220 late last week. However, it’s still around $30 cheaper than German 125% wheat, and around $15 less expensive than Romanian.
FranceAgriMer data showed that farmers in France have barely begun maize harvesting, wheat and barley planting after the wettest month of September for 25 years.
Commodity Weather Group reported that rain showers are expected in Europe in the next 10 to slow down the pace of wheat and maize seeding. ($1 = 0.91131 euros) Reporting by Gus Trompiz and Michael Hogan, Hamburg; editing by Andrew Heavens and Kevin Liffey
Euronext wheat fell for a second consecutive day on Friday. It was further down from its three-month highs, as traders took profits and concerns about tight Black Sea supplies subsided.
December wheat traded on Paris’ Euronext closed 1.5% lower at 228.75 euro ($250.53) per metric ton. This is a drop from the peak price of 235.00 euro reached Wednesday.
The contract has increased by 3.5% in the last week.
Chicago wheat also fell for a second day, further pressured by a rising dollar after stronger than expected monthly jobs data.
The wheat markets rose this week, as a drought in Russia affected sowing and talk of possible restrictions by Moscow fueled doubts about Black Sea export supplies.
Prices were cooled by the news that Turkey would only ease slightly a wheat import restriction that lasts until Oct. 15.
The mills’ association in Turkey said that they were seeking to relax the ban. However, the Turkish trade ministry stated that no decision has been made yet.
One German trader stated, “I don’t think there are enough bullish stories today to keep the upward momentum going with Russian wheat still being cheap and moving in large quantities into export markets.”
The trader stated that “It appears as though Turkey will continue to have a restrictive system, and this would not mean that the floodgates for imports were being opened.”
Egyptian plans to increase the use of corn or sorghum for state-subsided bread cooled down reaction to reports that it had agreed a large deal on Black Sea wheat imports.
Saudi Arabia’s import tender drew only a modest response due to the low volume requested and the expectation that Russian products would dominate.
The price of Russian 12.5% protein wheat for shipment to the Black Sea in October was quoted on Friday at $225-$232 per ton FOB. This is up from $217-220 late last week. However, it’s still around $30 cheaper than German 125% wheat, and around $15 less expensive than Romanian.
FranceAgriMer data showed that farmers in France have barely begun maize harvesting, wheat and barley planting after the wettest month of September for 25 years.
Commodity Weather Group reported that rain showers are expected in Europe in the next 10 to slow down the pace of wheat and maize seeding. ($1 = 0.91131 euros) Reporting by Gus Trompiz and Michael Hogan, Hamburg; editing by Andrew Heavens and Kevin Liffey
Source Link : https://www.marinelink.com/blogs/blog/eu-wheat-drops-further-from-its-highs-as-black-sea-jitters-101920
