PARIS/HAMBURG: Euronext wheat fell to a one-month low on Friday as traders remained cautious about Chinese purchases of US crops and focused on export competition in a well-supplied wheat market.
March wheat on Euronext settled 0.4percent down at 192.00 euros (USD220.90) a metric ton, after reaching its lowest since October 22 at 190.50 euros.
Front-month December wheat, less active after the expiry of its options, dropped to a one-month low at 187.75 euros before steadying to close up 0.3percent at 189.75 euros.
Bumper crops being harvested in Australia and Argentina are set to further swell global wheat supply, stiffening competition for European wheat already faced with strong Russian shipments. “The EU is facing hard competition from the Black Sea in export markets, with Russia holding a price lead in some North African markets including Egypt,” a German trader said. Russian 11.5percent protein wheat for December shipment to Egypt was around USD247-USD248 a ton, cost and freight (c&f) included, he said.
French, Russian Ukrainian and Romanian were all around USD251-USD252 a ton c&f Egypt, depending on exchange rate and currency moves.
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