PARIS: Euronext wheat ended little changed on Thursday, consolidating below an earlier seven-week high as a rally in US grain futures stalled. Benchmark December milling wheat on Paris-based Euronext settled unchanged on the day at 188.00 euros ($222.55) a tonne.
It earlier rose to 189.00 euros, a new high since mid-July, before paring gains in the face of chart resistance and an easing in US futures. Grain markets have been buoyed by brisk Chinese demand for US soyabeans and corn, along with concern over weather damage to Midwest crops. "The US market is having a little breather after its rally," a futures dealer said.
"Aside from the Chinese purchases, the rise wasn't necessarily fundamentally driven. It was also technical and fuelled by macro considerations for investors."
Wheat markets had been further supported by a steep rise in Russian export prices, which also steadied on Thursday. In Germany, 12% protein new-crop wheat for September onwards delivery in Hamburg was offered for sale at an unchanged 2 euros under the Paris December contact.
Buyers were seeking about 3 euros under Paris. More German exports are expected to Algeria and Britain, despite intense price competition in the Baltic Sea region.
"Lithuania and Latvia have made brisk sales to Algeria in past weeks to replace French wheat after the poor French harvest," a German trader said.
"Even Swedish wheat has been sold to Algeria. But hopes continue that German wheat will also be sold to Algeria, sub-Saharan Africa and Britain."
One ship recently loaded about 30,000 tonnes of wheat in a German port for Guinea in Africa while a series of smaller vessels of about 4,000 tonnes have sailed for Britain.