European wheat futures in Paris drifted up on Tuesday as markets assessed fears the coronavirus outbreak in China could hit economic growth. Front-month March on the Euronext exchange in Paris was up 0.2% or 0.5 euro at 194.75 euros ($216.06) a tonne at 1708 GMT, off the low hit earlier on Tuesday of 193.25 euros.
US futures in Chicago remained weak on fears the coronavirus outbreak will cause disruption to commodity demand. Paris futures rose close to the psychologically important level of 200 euros a tonne last week, reaching 199.75 euros but followed US markets down as the spread of the virus outbreak in China triggered broad-based commodity selling.
"There is some profit-taking with people in doubt about what will happen next," one trader said. Another trader said transport strikes in France over pension reform, which have hampered traffic at French ports, were also weighing on sentiment. There were reports of several export shipments being re-routed from France, notably to load in Germany.
The French grain industry last week warned of a severe impact on the cereal sector if strikes continue over pension reform, which have disrupted the country's rail services and port activities since last month. France's hard-line CGT called dockers to strike for 24 hours on Wednesday. In Germany, the extensive programme of ships loading wheat for export and hopes of more export sales supported cash premiums in Hamburg.
Standard bread wheat with 12% protein for February delivery in Hamburg was offered for sale unchanged at 4.5 euros over the Paris March contract. Buyers were offering up to 3.5 euros over Paris. "With Russian export prices high and the French transport strikes continuing, the prospects are positive for more German export sales," one German trader said.
"France continues to ship out a big programme of exports despite the transport strikes but we are receiving repeated inquiries from France about the possibility of using German wheat to fulfil past export contracts."
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