PARIS: Euronext wheat fell for a second day on Thursday in step with Chicago futures as wheat markets eased from multi-year highs fuelled by South American supply risks. March milling wheat on the Paris-based Euronext settled down 1.50 euros, or 0.7%, at 214.50 euros ($263.04) a tonne.
On Wednesday it had climbed to 219.00 euros, a life-of- contract peak and highest front-month price since August 2018, before closing lower. Chicago wheat was also heading for a second day of losses after a six-year high this week.
The broad grains rally was curbed Wednesday by a stabilization in the dollar and chart resistance. Traders said prices were further pressured on Thursday by disappointing weekly US soybean exports and an agreement to end a grain inspectors strike that had disrupted exports from Argentina.
Investors were turning their focus towards next week's US Department of Agriculture (USDA) global crop report to see how the agency would adjust South American crop forecasts in the light of dry growing conditions. The wheat market was also awaiting the resumption of activity in Russia after this week's holiday period to gauge the impact of a planned export tax.
In France, wheat shipments outside the European Union eased in December after a season's high in November, an initial estimate based on Refinitiv data showed. In Germany, hopes of new export sales and expectations of a busy ship loading programme in January supported premiums in Hamburg.
Standard milling wheat with 12% protein for January delivery in Hamburg was offered for sale at around 5 euros over Paris March against 4.5 euros on Wednesday. The holiday period in Russia was reducing offers of Russian wheat in export markets and an African buyer this week bought high protein wheat in the Baltic region, traders said.
Comments
Comments are closed for this article.