PARIS: Euronext wheat futures extended losses on Tuesday to a four-week low as the market saw scope for a wartime sea corridor for Ukrainian grain being extended.
Competitive prices of Russian wheat and a lull in demand for western European supplies also continued to weigh on Euronext.
December milling wheat, the most active contract on Paris-based Euronext, settled down 3.3% at 334.75 euros ($329.59) a tonne.
In late trading it fell to 333.50 euros, its lowest since Sept. 20. The opening of a chart gap in early trade added selling impetus and helped push the contract through technical floors, dealers said.
Chicago wheat also dropped to a four-week low.
Talks in Moscow between UN and Russian officials, described by UN spokesman Stephane Dujarric on Monday as “positive and constructive”, encouraged the view that the corridor deal could be extended.
“For now the market is still factoring in growing chances that the corridor will continue,” one futures dealer said. “But if the negotiations stall then prices could head back up.” Traders cited a lack of fresh export demand in France and Germany, with merchants mainly executing large sales from earlier in the season.
“There is a lack of new export demand for German wheat, especially for 11% to 11.5% protein content, while buyers assess whether they can expect continued supplies from the Ukrainian safe shipping corridor,” a German trader said.
Sellers of standard 12% protein wheat for October delivery in Hamburg were seeking a premium of about 13 euros over the Euronext December, with purchase interest at about 11 euros over.
European Union soft wheat exports so far in the 2022/23 season have reached 10.41 million tonnes, slightly below the level a year ago, weekly EU data showed.
Traders are watching to see if the price falls and weakness in the euro against the dollar may stir new demand for EU wheat.
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