LONDON: Wheat prices in western Europe changed little on Friday, with strong export demand and the prospect that quality problems in the Black Sea region could boost sales helping to offset weak US prices.
"Reports of growing concerns over the quality of Russian/Kazakhstan wheat supplies may underpin EU markets, as export demand, especially Egypt, may switch to the EU," David Sheppard, managing director of UK merchant Gleadell, said.
"At the last tender French values were about $10/T too expensive, but with exporters struggling to source 'export spec' Black Sea wheat, interior prices have risen, narrowing the differential," he added in a market note.
Benchmark November milling wheat on the Paris-based Euronext market was unchanged at 185.75 euros a tonne by 1525 GMT.
"The Black Sea has a big export programme on corn and wheat to fulfil and any issues could push buyers back towards the EU and US," British farmers cooperative Openfield said in a market note.
The European Union on Thursday reported 546,000 tonnes of export licences for soft wheat this week, keeping the volume so far this season far ahead of the year-earlier pace.
By country, the biggest volumes this week were requested in the Netherlands, with 142,000 tonnes, and Lithuania, with 128,000 tonnes, ahead of France with 87,000 tonnes, although traders caution that licences can be booked in one country and used to export grain from another.
In barley, the EU export data also showed hefty volumes, with 269,000 tonnes of licences awarded.
In another sign of healthy demand, a cargo of French barley was scheduled to load at Rouen in the coming days for Saudi Arabia, the latest in a string of such shipments to the Middle Eastern importer, port data showed.
November wheat futures in London stood 0.25 pound or 0.16 percent lower at 151.60 pounds a tonne.
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