PARIS: Euronext wheat rebounded in late trading on Friday as US government crop estimates triggered a broad rally in grains, taking attention away from stiff export competition in wheat.
Benchmark March milling wheat on Paris-based Euronext settled 1.6% higher at 233.00 euros ($238.76) per metric ton. In late deals the contract touched a one-week high at 233.75 euros as it bounced back from a three-week low of 228.00 euros earlier in the session. The US Department of Agriculture’s (USDA) closely watched world crop outlook surprised traders with bigger than expected cuts to its estimates of last year’s US corn and soybean harvests.
US corn and soybean futures rose sharply, helping Chicago wheat turn higher and shake off pressure from a rising dollar and a higher-than-expected USDA estimate of US winter wheat sowing. “It’s a strong buy,” a futures dealer said of the USDA report.
While immediate reaction to the data spurred futures, sentiment on the physical market in Western Europe remained gloomy in the face of export competition, even after a new two-year low for the euro against the dollar.
“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.”
Russian 12.5% protein wheat for January/February shipment was quoted around $239-$243 a ton free on board (FOB), little changed this week in thin holiday trade. But Romanian 12.5% was quoted below Russian at around $237-$238 a ton FOB. About 25,000 tons of Ukrainian feed wheat, meanwhile, was offered for sale at around 240 euros a ton including delivery to north Spain in January/February, with Ukrainian feed wheat also offered at 238-240 euros a ton including delivery to north Italy.
Competition from Black Sea supplies has added to difficulties for French exporters after a poor local harvest. Senalia, which runs the largest terminal at France’s biggest grain port Rouen, forecast on Friday its cereal export volumes would drop by more than half in 2024/25 to 1.6 million tons.
In oilseeds, February rapeseed on Euronext settled 1.7% higher at 524.50 euros a ton, after touching a two-week top of 547.75 euros in late deals in step with rallying US soybean prices.
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