PARIS: Euronext wheat was little changed on Friday after touching a six-week high a day earlier, with the market looking ahead to widely tracked US crop estimates on Monday, traders said.
March milling wheat, the most-active position on Euronext’s Paris-based futures, was unchanged on the day at 191.50 euros (USD222.71) a metric ton by 1711 GMT. The contract on Thursday rose to its highest since November 21 at 192.00 euros, supported by concerns over dry conditions affecting US crops and intense Russian attacks on Ukrainian infrastructure including ports.
But weather worries were tempered by forecasts of rain in the US Plains and snow cover expected to protect crops in central and eastern Europe from severe cold. Traders were adjusting positions before a raft of US Department of Agriculture data on Monday, including an estimate of US winter wheat plantings and updated forecasts of world supply.
“I think there is some market weakness ahead of the USDA report on Monday coupled with tough price competition for both US and west EU wheat in export markets,” one German trader said.
A lack of new international wheat purchase tenders issued this week also depressed sentiment. Black Sea markets were also still quiet during the Orthodox Christmas period.
“Some west EU cash markets look well supported but this is partly because of good internal EU demand from Spain and Italy,” another trader said. “Euro weakness is also supportive.” The European barley market remained well supported, with the announcement of the latest Turkish import tender seeking 210,000 tons raising the prospect of further demand.
In France, port terminal operator Senalia said brisk feed barley exports, together with an improved French harvest, should allow it to double its volume of cereal shipments in 2025/26. It is due to ship a rare cargo of feed barley to Iraq soon, it added. Euronext is delaying the launch of a planned evening session for its commodity futures to April 13 from February 2 to give more time to participants to prepare, the exchange said.
Comments
Comments are closed for this article.