PARIS: Euronext wheat futures ended narrowly mixed on Wednesday as widely followed U.S. government crop forecasts brought few surprises.
A rise in the euro capped Euronext, underscoring concerns about short-term European exports, although a run of shipments to Iran was boosting export sentiment in Germany, traders said.
March wheat on Paris-based Euronext settled down 1.75 euros, or 0.7%, at 262.75 euros ($300.64) a tonne. Further-away delivery positions closed flat to slightly higher.
Euronext was curbed in late trading as Chicago wheat gave up earlier gains following the U.S. Department of Agriculture’s (USDA) world supply and demand report.
The USDA pegged U.S. wheat stocks this season above the average trade expectations although its world wheat stocks forecast was slightly below the a mean trade estimates.
The March contract on Euronext has recovered from last Thursday’s four-month low of 259.00 euros, but has remained curbed by worries about lagging French exports.
In Germany, traders highlighted more loadings for Iran, an active importer this season. “One ship is currently loading 65,000 tonnes of wheat in Germany for Iran,” a German trader said. “Two more vessels are scheduled to start loading wheat for Iran in Germany in the coming days, one 65,000 tonnes and one 67,000 tonnes.”
Shipments to Iran could give fresh impetus to Germany’s export campaign after strong sales to Algeria earlier in the seasons.
“Iran is shaping up to be a large buyer of German wheat this year, despite heavy competition for sales from Russia, and may overtake Algeria as Germany’s largest export customer in coming months,” the trader added. Financial investors trimmed their net long position in Euronext’s wheat futures and options last week, data released by the exchange on Wednesday showed.
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