PARIS: Euronext wheat regained some ground on Tuesday as Monday’s steep fall raised hopes of fresh export demand. March milling wheat on the Paris-based Euronext exchange settled up 3.25 euros, or 1.2%, at 269.25 euros ($302.58) a tonne.
On Monday, the contract dropped 4.6% as European and US futures were pressured by waning fears of a Russian invasion of Ukraine, continued Black Sea export competition and forecasts of moisture for US crops.
Some traders said the slide appeared amplified by end of month investment flows.
Tunisia on Tuesday issued an import tender for soft wheat, durum and barley, suggesting that the price slide had encouraged buying interest.
“The Euronext fall on Monday has helped to make EU wheat look more competitive in import markets,” a German trader said.
“But the perception that war is not imminent in Ukraine also means Russian and Ukrainian wheat will probably continue to flow in big volumes on the world market without interruptions.”
A purchase of Black Sea wheat by Egypt on Friday had dented export sentiment in France.
The European Commission reported soft wheat exports from the European Union so far this season had reached 16.64 million tonnes, up 1 million from its weekly previous update after delayed French figures were incorporated.
However, traders still view the export pace as too slow to meet forecasts.
Comments
Comments are closed.