Paris wheat steady with Chicago, German premiums weaker

PARIS: European wheat futures edged higher on Monday in keeping with a firm trend in Chicago, although a lack of supply and demand news helped keep prices in their recent range, traders said.

Benchmark December milling wheat on Paris-based Euronext, settled 1.25 euros, or 0.6 percent, higher at 203.00 euros a tonne.

It earlier rose to 203.50 euros, its highest in almost two weeks, before paring gains to return to a narrow range around 200 euros.

A fresh rise in the euro, which hit its highest in over three months against the dollar, helped keep Euronext prices in check, but traders said the market mainly lacked fundamental impetus.

"We're not able to get out of the price range which we've been in for the past week, we need some fresh newsflow," one futures dealer said.

Wheat prices have risen this year on the back of weather-hit harvests in several exporting countries, including top supplier Russia that has been the subject of speculation about export restrictions, and many traders and analysts see further upside for prices.

In exports, European Union data showed soft wheat shipments from the EU since the start of the 2018/19 season on July 1 had reached 3.8 million tonnes.

That was 29 percent below the year-earlier volume but traders noted however a partial recovery in this season's figures, mainly due to a sharp upward revision for exports from Romania.

In France, wheat export activity remained slow except for shipments bound for Algeria, but port data showed a first barley cargo of the season for Jordan.

In Germany, cash premiums in Hamburg slipped as thin export demand after a drought-hit harvest continued to weigh.

"There is lack of energy in the market. Germany's exports are depressed and I think we are one reason for the overall sharp fall in EU exports," one German trader said.

"Weekend rain came too late to help maize much with the maize harvest underway and suffering from the summer dryness. This could help keep demand for feed wheat from animal feed producers, provided African swine fever does not appear here," he added.

Standard bread wheat with 12 percent protein for October delivery in Hamburg was offered for sale at 2 euros over Paris December against 2.5 euros over on Friday.

Feed wheat in Germany's South Oldenburg market for October/December was offered for sale well over milling wheat at around 215 euros a tonne, with buyers seeking 213 euros.