EU wheat ticks lower as export prospects assessed

PARIS: European wheat futures edged lower on Monday in thin trading as traders waited for indications as to whether tightening supply in Russia would boost EU exports.

March milling wheat, the most active contract on Paris-based Euronext, settled 0.75 euro, or 0.4 percent, lower at 205.00 euros ($234.38) a tonne.

The contract remained rangebound after failing to breach chart resistance when it touched a two-week high of 207.00 euros last Thursday, dealers said.

Chicago wheat, the global benchmark, also ticked down as investors awaited a resumption of regular grain data from the U.S. Department of Agriculture (USDA) after a month-long partial shutdown of the U.S. government.

"Everyone is convinced that Russian wheat exports are going to subside, but there are other competitors out there," a French trader said.

"There is still wheat left to sell around the EU, notably in Britain, and Argentina is still active in a number of overseas markets."

Russian wheat export prices rose last week due to a stronger rouble currency and seasonally lower supply, in another sign that Russia is becoming less competitive for export after brisk shipments in the first half of the season.

However, there has yet to be a clear upturn in European Union exports, which are lagging behind last season's pace.

EU soft wheat exports had reached 9.2 million tonnes by Jan. 27, down 26 percent from a year ago, official data showed on Monday.

In Germany, cash premiums in Hamburg firmed as sellers declined to accept the fall in Paris.

Standard bread wheat with 12 percent protein for February delivery in Hamburg was offered for sale at 5.0 euros over Paris March against 4.5 euros over on Friday.

Feed wheat in the South Oldenburg market for February/March delivery was offered for sale above milling wheat, but down 1 euro at around 217 euros a tonne, with buyers seeking 216 euros.

"Heavy German feed grain imports continue after last summer's drought which is helping to cool prices," a German trader said.

"Recent feed wheat import shipments into Germany include a vessel with about 45,000 tonnes from Bulgaria. More German imports of feed barley from France are also expected in coming weeks."