PARIS: Benchmark wheat futures on Euronext ended marginally higher on Friday, steadying after a two-week low as traders assessed mixed export prospects.
May milling wheat, the most active contract on the Paris-based Euronext, settled up 0.25 euros, or 0.1%, at 228.25 euros ($271.73) a tonne, after falling to its lowest since Feb. 19 at 226.50 euros.
Front-month March futures settled 4.75 euros, or 2%, lower at 231.50 euros a tonne.
The contract, which expires on March 10, has pulled back from a peak of 252.75 euros on Monday that was the highest front-month price since May 2013.
A lack of fresh importer demand, after a wave of Russian shipments before an export levy increased, has curbed European prices.
“Remaining old crop supplies may be tight but carry a $40-50/t price premium to new crop. Perhaps importers will target cheaper new crop supplies if they have sufficient stocks to wait until they are available,” British merchant Frontier Agriculture said in a note.
In Poland, there were signs of a shift towards domestic demand as also seen in Germany.
“Due to slow recent export sales, exporters redirected several thousand tonnes of Polish milling wheat from the ports to the domestic market,” one Polish trader said.
“Domestic demand from feed compounders and flour mills is getting stronger and internal market prices are rising.”
Domestic prices for 12.5 percent protein wheat rose by 10 zloty a tonne for immediate delivery to 960-1,010 zloty a tonne (209.6-220.5 euros). The same prices are paid by feed compounders for feed wheat.
Exporter purchase prices for 12.5% protein wheat rose by about 5-10 zloty on the week to 1,035 zloty for April delivery.
“Export loadings in Polish ports are still brisk but are expected to slow down in April,” the trader said.
In rapeseed, May futures on Euronext rose as high as 520.00 euros, a fresh 8-1/2 year high, as tight short-term supply in oilseed markets continued to support prices.—Reuters
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