Paris wheat eases before US data as euro recovers
PARIS, Sept 29 (Reuters) – Euronext wheat futures were lower on Friday as a further recovery in the euro against the dollar underscored short-term competition from Black Sea supplies. FRX/
The European market lacked impetus from Chicago, where wheat futures Wv1 edged down as investors awaited U.S. grain stocks data later in the day. GRA/
December wheat BL2Z3 on Paris-based Euronext was down 1% at 237.00 euros ($250.79) a metric ton by 1516 GMT.
Futures had found support early in the week as dry weather in Australia and Argentina, war damage to Ukrainian ports and a minimum wheat price in Russia all raised doubts about the availability of export supplies.
But Russian wheat was quoted by traders at prices below the nominal export floor while Ukraine’s export prospects have been boosted by the creation of a new Black Sea channel and talk of large purchases of Ukrainian corn by Chinese buyers.
In Poland, export prices were supported by currency weakness despite ongoing Black Sea competition.
Polish 12.5% protein wheat rose by 5 zloty on the week to about 1,040 zloty (224.5 euros) a ton for October port delivery.
“Wheat prices in northern Europe are still higher than in the Black Sea, especially Russia, Romania, and Bulgaria,” one Polish trader said.
“Ukrainian transit grains continue to flow to Polish ports. Due to this heavy shipping programme it is difficult to find free storage space in the ports.”
Poland’s agriculture minister said on Wednesday talks with Ukraine were on track as the countries try to resolve a dispute about a ban imposed by Warsaw on sales in Poland of Ukrainian grain.
“The market regards this as political summer theatre ahead of the Polish elections in October,” the trader said.
“The whole story is political to win farmers’ votes. But the political dispute and local sales ban is creating a lot of uncertainty. Local sales of Ukrainian imports naturally dropped rapidly after the import stop was introduced, however the transit is still going on.”
In Gdynia, one ship is loading 33,000 tons of wheat for North Africa, while a multinational trading house is loading one ship of 31,000 tons and another of 55,000 tons for undisclosed destinations.
In Swinoujscie, two ships recently sailed for Nigeria, each with 33,000 tons.
In France, barley loadings for China continued to dominate volumes in grain port schedules while traders waited for reported sales of French wheat to China to be loaded later in the year. GRAIN/SHP/FR
($1 = 0.9450 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Hugh Lawson)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
Source Link: https://www.nasdaq.com/articles/paris-wheat-eases-before-us-data-as-euro-recovers
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