PARIS: Euronext wheat edged down on Friday to a three-week low as export competition hung over the market, despite further weakness in the euro, and as traders adjusted positions before closely-followed US government crop estimates.
Benchmark March milling wheat on Paris-based Euronext was down 0.1% at 229.00 euros ($234.27) per metric ton by 1630 GMT. The contract earlier reached its lowest since Dec. 20 at 228.00 euros but found chart support around that level.
Chicago wheat also extended losses to approach a four-month low, pressured by smaller than anticipated weekly US export sales and a rise in the dollar after monthly jobs data exceeded expectations. However, price moves were moderate as participants awaited a series of crop reports from the US Department of Agriculture later on Friday that will give a gauge of world and US grain supply.
In Western Europe, the euro’s slide to a new two-year low against the dollar failed to lift export gloom. “Black Sea prices are still looking very cheap compared to the west EU, especially Romanian wheat,” one German trader said. “There is also concern that the weak trend in the Russian rouble against the dollar will encourage more Russian exports despite all the state efforts to slow shipments.”
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