HAMBURG: European wheat prices in Paris were unchanged on Wednesday, still supported by uncertainty about the final size of the European harvest after heavy rain this spring and summer damaged crops.
An early fall of about 2 percent in US wheat futures in Chicago on Wednesday weakened European sentiment.
"As long as we do not have a clearer picture of the size but also of the quality of the crop the Matif (Euronext) will not move much," a Euronext trader said.
Benchmark December on Paris-based Euronext milling wheat futures unofficially closed unchanged at 163.50 euros.
Recent rain in the two largest EU producers France and Germany is believed to have damaged harvests, although details are still scarce.
"If the volume of the crop is below expectations we could see a rise in prices in the short term," the trader said.
Harvesting is underway in French regions which suffered most from the spring floods. Farmers there reported very disappointing yields and low specific weight, an important criteria on the export market, but good protein levels.
"Animals are going to eat high protein wheat," another trader said, as much milling wheat is likely to only reach animal feed quality this year.
German cash market premiums in Hamburg were little changed with dealers also awaiting indications about the level of damage repeated rain in June and July caused to Germany's crop.
Standard wheat with 12 percent protein content for September delivery was offered for sale at an unchanged 1.5 euros over the Paris December contract. Buyers were seeking an unchanged 1 euro over Paris.
"The wheat harvest is starting in early south German regions which are believed to have suffered the worst impact of the rain this summer," one German trader said. "The southern areas of Bavaria and Baden-Wuerttemberg are thought likely to have suffered most quality damage such as loss of protein content."
"We could start to see some early quality indications early next week, with big differences between various regions expected. But meanwhile more rain is forecast in coming days which is also not good for wheat."
Widespread showers coupled with high temperatures are forecast for Germany between Thursday to Sunday, at a time when wheat needs dry weather and sunshine.
Meanwhile, German old crop exports continue with a ship in the German port of Rostock loading 65,000 tonnes of wheat for Saudi Arabia, traders said.
Comments
Comments are closed.