PARIS: Euronext wheat prices fell on Thursday, pressured by the sharp rise of the euro against the dollar, making euro-denominated grains more expensive on world markets at a time of strong competition and ample supplies.
March wheat on Paris-based Euronext was down 0.7 percent at 188.75 euros (USD221.89) per metric ton at 1630 GMT.
Chicago wheat was up 0.3 percent after hitting a six-month low in the previous session.
The U.S dollar slumped on Thursday, hitting multi-month lows against the euro and extending losses from the previous session after the Federal Reserve delivered a less hawkish outlook than some had expected.
“The strength of the euro is certainly disappointing when the EU is already facing heavy price competition from Argentina and the Black Sea,” one German trader said. “There is some welcome increase in demand with a large purchase in a tender by Tunisia today. But overall, importers face a wide choice of possible suppliers at low prices,” he said.
Tunisia is believed to have purchased about 125,000 metric tons of soft wheat on Thursday, traders said.
Argentina is still the world’s cheapest high-volume origin with the country also cutting grain export taxes this week, giving additional incentives to make foreign sales.
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