PARIS/HAMBURG: European wheat edged lower on Friday, pressured by Black Sea competition and a fall on US markets.
Benchmark May milling wheat on Paris-based Euronext, was down 0.3% by 1500 GMT to 226.00 euros ($244.42) a metric ton. It was still set for a 1% weekly increase after a 9% climb the previous week.
By the same time the most traded wheat contract on the Chicago Board of Trade was also down 0.3% at $5.54-1/2 a bushel.
“The market seems to be in something of a lull, with the future of the Ukraine peace talks unclear and the initial impact of US tariffs not as serious as previously feared with a lot of tariff-posturing going on,” one German trader said.
Some importers may be waiting in the hope a Ukrainian peace deal will be found and some agreement between the US and other countries on tariffs, which would both be bearish for prices, he said.
The sharp fall in the Turkish currency following political controversy in Turkey this week meant Turkish mills were unlikely to take immediate advantage of new possibilities to import wheat, traders said. Meanwhile, Russian and other Black Sea wheat was finishing the week well below the western EU.
Russian and Ukrainian 11.5% wheat was around $244-$246 a ton FOB, about $6-$7 under the west EU depending on Euronext, traders said. Argentine wheat was seen at similar prices to Russian. US soft red winter was even cheaper at around $235-$240 a ton FOB but facing higher shipping costs.
Demand was seen for cheap Ukrainian new crop feed wheat, quoted at around 215-219 euros a ton including delivery to north Germany and the Netherlands. Financial markets operator CME Group is working on plans for a Black Sea wheat futures contract tracking Romanian and Bulgarian prices, European traders said.
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