PARIS: Euronext wheat futures fell on Friday to near contract lows, pressured by a sharp drop in Chicago and worries about stiff export competition amid ample global
supplies. March milling wheat on Paris-based Euronext was down 1.4% at 215.25 euros ($233.78) a metric ton at 1554 GMT, near a life-of-contract low of 214 euros struck last week.
A lull in demand this week, following a run of purchases by importers last week, has put the focus back on lagging European Union exports and cheaper competition from Black Sea supplies.
“All the gains we saw this week have evaporated today, with Chicago back under $6 a bushel,” a French trader said.
“It’s gone very quiet and there’s nothing to give the market impetus.”
Easing prices in Russia and rising volumes in Ukraine’s wartime sea shipping channel were keeping attention on competition from the Black Sea zone.
“Russian export prices for both 11.5% and 12.% protein wheat for February shipment are still
holding below $240 a ton FOB,” one German trader said.
Traders said substantial numbers of grain ships previously booked to ship grains through the Red Sea were still sailing,
but it is becoming more difficult to book grain ships to make the Red Sea transit.
“With more ships being diverted from the Red Sea because of the attacks, people are starting to ask whether Ukrainian wheat will find its way into markets like Algeria in greater volumes,” another trader said. Algeria is one of the largest export markets for EU wheat.
Traders also noted news that the Chinese customs authorities have approved Argentine wheat for export to China, which could increase competition for French wheat in what has been a major export destination in recent years.
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