EU wheat steady as Saudi tender awaited, rapeseed at near 2-year high

PARIS: Euronext wheat edged up on Friday, supported by weakness in the euro as traders awaited results from a Saudi tender to gauge export competition.

March wheat, the most active position on Paris-based Euronext, was up 0.2% at 229.50 euros ($240.88) a metric ton by 1635 GMT. The Euronext benchmark found support in a two-week low for the euro against the dollar, although it held below a near three-week high struck on Thursday.

Volumes were light with some participants starting to wind down activity before the year-end holiday period, traders said. Wheat had drawn support earlier this week from a lower forecast for US stocks, as well as market speculation that a Russian export quota for the end of the season may be reduced.

But competitive prices for Black Sea supplies and harvest progress in Argentina and Australia kept the market in check. “The weaker euro is greatly welcome for export prospects but the west EU still has a long way to go to export competitiveness,” a German trader said. Saudi Arabia’s tender for 595,000 tons, the results of which are expected on Monday, is being watched to see if Russian government measures to curb exports increase the chances of other supply origins.

There was talk that some Russian trading firms were not invited to participate in the tender and that participating firms might offer Russian wheat above market prices at as much as $250 per ton free on board (FOB).

This would compare with market quotes on Friday for Russian 12.5% protein wheat for January delivery at $232-$237 a ton FOB. Romanian/Bulgarian wheat at around $239-$241 was seen as the leading EU contender in the Saudi tender. In oilseeds, February rapeseed on Euronext extended gains from Thursday as participants covered positions after Euronext’s announcement that physical delivery in eastern France would not be available for the February contract following a river accident in Germany.

February futures were up 1.4% at 545.75 euros a ton, after rising to 555.50 euros, a contract high and the highest front-month price since late February 2023. However, the navigation authority in charge of the German portion of the Mosel river said on Friday it will attempt to install a temporary lock this weekend to let transit resume.