PARIS: European wheat edged higher in late trade on Friday as a sharp fall over the previous days was seen as overdone at a time when export prices in major competing regions remain firm, traders said.
Benchmark December milling wheat on Paris-based Euronext closed 0.75 euro lower at 205.75 euros a tonne.
The market has lost some upward momentum, however, after rising to a peak of 214.00 euros last week on dryness in key Northern Hemisphere producing regions.
Concerns over the impact of a surge in COVID-19 infections on global economies and much-needed rain in some areas have prompted a sell-off during the last few days.
"The second wave (of COVID-19) and the lockdowns are a concern but not enough to justify a further fall on the wheat market, prices in other exporting countries such as Russia remain strong," one trader said.
In Germany, sellers remained unwilling to follow this week's weakness in Euronext, with premiums firming.
"We have a difficult market picture with strong demand for export loadings in German ports meeting a reluctance to sell by producers who are unhappy with the fall in Euronext prices this week," one German trader said. "Premiums are firm but its very difficult to get large-volume sales offers anyway."
Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at 1 euro over Paris December, with prices moving into a premium over Paris.
Few sales offers had been seen on Thursday but, selling prices had been under Euronext in past days.
Buyers were seeking 1 euro under December against 2.5 euros under on Thursday.
"Sellers are not regarding this week's Euronext weakness as justified in view of the strong export demand for European Union wheat as Black Sea prices remain high," the trader added.-Reuters
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