PARIS: European wheat rose on Monday, supported by a fall in the euro against the dollar which made the grain more competitive on world markets and a rally in Chicago.
Benchmark December milling wheat on Paris-based Euronext, was up 1.1 percent by 1711 GMT to 201.75 euros ($227) a tonne.
"The fall of the euro can change the situation by improving French wheat's competitiveness on the world market but we first need to wait for a slow-down in the massive Russian shipments," one broker said, adding that there had been a rise in demand near French export hubs.
A drop in the quality of Argentine wheat due to rainfall could also benefit French wheat on markets such as Algeria in December, traders said.
"In Europe, rainfall is back in the west but the centre and the east remain dry, leaving a risk for 2019," French consultancy Agritel said.
And in the United States, adverse weather is threatening wheat sowings.
In Germany, cash premiums in Hamburg were little changed as exports remained very low compared to past years.
"The euro's weakness today is very welcome but it does not seem in itself enough to change the bad export picture," one German trader said. "The main hope is that Russian export prices will start rising as Russian export stocks sell out but there are currently no major signs of this."
"Rumanian wheat exports also remain strong. Until Russia and Romania start to sell out the west EU including Germany is likely to stay on the export sidelines."
"Feed wheat rather than exports continues to be the main market driver."
As of Nov. 8, Russia had exported 21.5 million tonnes of grain since the start of the 2018/19 season on July 1. That was up 20 percent compared with a year ago and included 18.2 million tonnes of wheat.
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December. There was a wide gap between buyers and sellers, with purchase offers of only 1.5 euros over Paris heard.
Feed wheat in Germany's South Oldenburg market for November/December delivery was offered for sale above milling wheat, unchanged at around 215 euros a tonne, with buyers seeking 213 euros.
Comments
Comments are closed for this article.