HAMBURG: European wheat futures hovered close to one-month lows on Monday on competition from low prices offered for Russian wheat in export markets as traders awaited news about whether the safe shipping corridor for Ukraine’s grain exports will be extended.
Dry weather in west Europe and falling US futures in Chicago also weighed. May wheat, the most active contract on Paris-based Euronext, was down 0.5% at 278.50 euros ($294.79) a tonne at 1503 GMT, close to Friday’s one-month low of 278 euros.
“Euronext wheat has been trading sideways due to lack of news, but the weather continues to look dry over much of western Europe in the coming week, reinforcing the dry weather pattern affecting France, the UK and parts of Germany since plantings,” said Carlos Mera, head of agri commodities market research at Rabobank.
Market attention remained on the future of Ukraine’s grain export agreement which is expected to be extended, Russian export volumes for the rest of this season and the size of the next Russian crop and export policy, he said.
The large tender from Turkey for 790,000 tonnes of wheat on Tuesday will be watched closely to see if Russian wheat again dominates after winning at Egypt’s tender last week, a German trader said.
Comments
Comments are closed for this article.