PARIS: Euronext wheat futures fell further on Thursday to touch a five-week low as bumper Australian and Canadian crops eased global supply concerns while a soaring euro also pressured prices. However, physical markets again held steady as current export activity continued to erode the harvest surplus in western Europe.
March milling wheat on Euronext was down 1.25 euros, or 0.6%, at 203.25 euros ($246.79) a tonne by 1723 GMT, falling for a fifth straight session. It earlier reached its lowest since Oct. 29 at 202.25 euros.
Chicago wheat fell as a larger than expected official estimate of Canada's wheat crop added to supply pressure created this week by an increased forecast of Australia's harvest and a Russian proposal to expand its grain export quota. A surge in the euro to a 2-1/2 year high against a broadly weaker dollar also curbed Paris prices, making European grain less attractive for holders of other currencies.
"Euronext has room to decline with the euro but physical premiums less so given that there's not much available supply," a French trader said. In Germany, premiums in Hamburg firmed as export shipments looked to remain large in December, despite the euro creating doubts about fresh sales.
"More ships are appearing on the port lineups to load wheat in the next week or so and there is not much time left before the Christmas holiday starts," one German trader said. A large purchase tender for 400,000 tonnes of wheat from Turkey closing on Friday could also bring fresh demand.
Standard bread wheat with 12% protein for December delivery in Hamburg was offered for sale at about 5.0 over Paris March against 4.5 euros over on Wednesday. Buyers were offering about 4 euros over. Canada's smaller than expected estimate of its canola harvest supported a rebound in Euronext rapeseed. February rapeseed was up 1% at 407.50 euros a tonne, after holding the 400 euro level on Wednesday when it touched a three-week low.
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