PARIS: Euronext wheat edged higher on Thursday as Chicago grain futures recovered from multi-week lows and traders assessed export prospects in the wake of a mixed European harvest.
December milling wheat, the most active contract on Paris-based Euronext, settled up 1.50 euros, or 0.6%, at 244.25 euros ($289.70) a tonne.
It earlier equalled a two-week low of 241.25 euros from Tuesday, but again found chart support around that level.
Chicago wheat ticked up after hitting a one-month low, while corn recovered from a seven-week low, as the US market consolidated following a slide this week fuelled by storm damage to export facilities.
“Most global markets will continue to be driven by events in the US, as slower exports and favourable rains weigh on prices,” British merchant ADM Agriculture said in a note. “European markets will follow to an extent, but are more focused on quality issues for now.”
Rain damage to European wheat contributed to a rally in wheat futures to 8-1/2 year highs during August, and traders were still assessing harvest quality for export.
Export sentiment remained bullish in Germany, where summer showers appeared to have caused less quality deterioration than in France.
“French problems with poor new-crop wheat quality are opening up possibilities in new markets following the success of German wheat in France’s big market in North Africa,” one German trader said, referring to Algeria.
“There are moves to sell German wheat in sub-Saharan Africa and the first successes are being seen.”
One ship has just sailed from Germany with about 40,000 tonnes of wheat for Nigeria and another is loading 23,000 tonnes for Guinea, traders said.
German wheat was expected to be used to source part of a tender purchase this week by Algerian state grains agency OAIC, estimated at nearly 500,000 tonnes.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale at around 9 euros over Paris December. Buyers were seeking about 8 euros over.
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