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Euronext wheat eases back towards 300 euros

Euronext wheat fell on Friday in light trade as cheaper Black Sea supplies continued to curb prices while participants adjusted positions before the expiry of December futures.

Benchmark March milling wheat (BL2H3) on the Paris-based Euronext was down 1.2% at 303.25 euros ($319.23) a tonne by 1535 GMT.

That brought it back towards Tuesday's low of 299.75 euros, a weakest second-month price (BL2c2) since Feb. 25, although dealers said 300 euros remained a strong support floor.

Front-month December futures (BL2Z2) on Euronext, which expire on Monday, were down 1.3% at 304.00 euros in small volumes.

Chicago wheat ZW1! edged down as weekly U.S. export figures near the low end of market expectations kept attention on ample supplies from the Black Sea region and Australia.

News that Egypt had bought 260,000 tonnes of Russian wheat via private talks on Thursday underscored competition from Black Sea supplies, despite disruption caused by the war in Ukraine.

"The price weakness seen since October has been driven by a better-than-expected production outcome from the Northern Hemisphere harvest, especially from Russia," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

However, Euronext remained underpinned by previous export sales for European Union wheat, including large French sales to China that are expected to drive a busy year-end port loading programme. (GRAIN/SHP/FR)

Cold weather in Europe was being monitored, although snow cover in northern regions and the absence of deep frosts were seen limiting risks of crop damage.

In France, 97% of soft wheat was in good or excellent condition in the week to Dec. 5, farm office FranceAgriMer said in its last weekly update before the winter dormancy period.

($1 = 0.9499 euros)

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