Euronext wheat futures close flat

Euronext wheat futures closed flat on Thursday as official US sowing estimates were largely in line with expectations and US wheat futures were subdued. Benchmark May milling wheat on the Paris-based Euronext exchange settled unchanged on the day at 175.00 euros a tonne.
Closely watched US Department of Agriculture (USDA) forecasts of crop planting confirmed expectations for a sharp drop in wheat acreage and a shift away from corn to soybeans. "There were no huge surprises and it was pretty much all priced in," one futures dealer said. The estimated 2017 wheat area was below the average trade estimate, but remained offset by large global supplies.
The International Grains Council on Thursday raised its forecast for the global grains crop in 2016/17. Argentina's government, meanwhile, forecast a record high 18.3 million tonnes of wheat for its 2016/17 crop, of which 11 to 11.5 million tonnes could be exported.
In exports, official data showed European Union soft wheat exports so far in 2016/17 had reached 15.8 million tonnes, including a meagre 81,000 tonnes in the past week. EU exports have been curbed this season by a poor harvest in France, but recent weakness in the euro has raised hopes for late-season sales from Germany, the EU's No 2 wheat producer. "The outlook for new export sales from Germany remains positive, especially if the weaker tendency in the euro continues," one German trader said. "There are expectations of more demand from Saudi Arabia among other importers."
"Egypt, Jordan and Tunisia also made sizeable wheat purchases this week which is helping to soak up some of the large wheat supplies available in export markets even if Germany is not an origin." German cash market premiums in Hamburg were little changed, underpinned by hopes of more export business. Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at an unchanged premium of 4 euros over the Paris May contract. Buyers were seeking 3 euros over.