PARIS: European wheat futures fell on Friday to fresh six-month low, pressured by weakness in Chicago and further strength in the euro. May wheat on Euronext settled 0.5% down at 221.75 euros ($240.20) a metric ton.
The contract earlier dropped to 219.25 euros, its lowest since late August and slightly below a previous six-month low from Thursday.
A new four-month high for the euro against the broadly weaker dollar weighed on Euronext, which adjusted downwards to remain relatively stable in dollar terms.
“It’s a completely different story when converted to USD.(Euronext May) is currently sitting near the middle of this week’s range,” CM Navigator analyst Donatas Jankauskas said. Chicago wheat also eased after a two-day rally fuelled by US tariff exemptions.
The easing of tariffs against Canada and Mexico, has reassured investors fearful of disruption to trade, including US agricultural exports. In exports, the euro’s strength and a lull in demand have tempered hopes that Western European wheat could grab more demand as Russian supplies tighten.
“The stronger euro this week is really unwelcome news just as west EU export prices were starting to look competitive against Russia for the first time in ages,” one German trader said.
“It is a great pity that Egypt is not issuing snap tenders any more, as France could have a chance of winning,” he added. Some trader calculations on Friday put French, Romanian and Ukrainian 11.5% protein wheat for March shipment to Egypt almost the same at around $254 a ton cost and freight included (c&f) depending on Euronext moves, with Russian C&F prices to Egypt about $7-$8 higher.
Cheap Ukrainian feed wheat was also available in the EU, with quotes around 213-215 euros a ton including prompt delivery to north Germany. In France, ratings for the country’s main wheat crop improved slightly last week, data from farm office FranceAgriMer showed on Friday, though traders remain concerned about damage from soggy conditions in recent months.
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