PARIS: Euronext wheat futures steadied in late trading on Friday, with a fall in the euro and improved export sentiment helping prices recoup earlier losses linked to jitters over a Chinese riposte to sweeping US tariffs.
May wheat on Euronext unofficially closed 0.45% up at 222.00 euros ($243.65) a metric ton. The front-month contract earlier extended Thursday’s fall as a rout on financial markets continued, with China’s 34% additional duties on US goods fanning recession fears. But with disruption to US crop exports seen centred on soybeans, Chicago wheat trimmed its losses.
“The China impact on US corn and wheat is pretty limited,” one futures trader said. Euronext also found support in an easing in the euro from Thursday’s six-month high against the dollar. With May futures still close to a one-year low struck last Friday, traders continued to see short-term export opportunities for Western European wheat.
There was ongoing market talk that some French wheat has been sold to Egypt for nearby shipment, though traders were still awaiting confirmation. “French wheat is still looking in contention for export sales with Russian wheat more expensive than French and Ukrainian wheat looking cheap as the week ends,” a German trader said. Ukrainian 11.5% protein wheat was on Friday around $244-$248, just under or about the same as French prices depending on Euronext moves. Russian and Romanian 11.5% wheat were both seen at $249-$252, around $2 above French depending on Euronext.
French wheat was also attracting demand within the European Union as feed wheat, with merchants looking to clear large stocks in port silos ahead of this summer’s harvest, traders added. Traders also said an unusually large shipment of around 70,000 tons of French maize was due to load for Spain soon.
New-crop December wheat on Euronext ended flat at 224.50 euros, curbed by improved field conditions in France and other major Northern Hemisphere wheat belts.
Ratings of soft wheat in France showed that 76% of the crop was in good or excellent condition by March 31, up from 74% a week earlier, data from farm office FranceAgriMer showed. Rapeseed futures on Euronext also steadied after being pressured by the losses in rival oilseed soybeans. May rapeseed settled 0.05% down at 517.00 euros a ton.
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