PARIS: Euronext wheat fell on Friday to post a weekly fall as participants made adjustments in front-month futures while a firmer euro dented export prospects.
March milling wheat on Euronext settled 1.8percent down at 190.00 euros (USD224.45) a metric ton. Over the week, the contract was 2.2percent lower, after retreating from a 2-1/2 month high of 194.75 euros on Tuesday.
Some participants were exiting the front-month position and rolling positions towards May futures, for which open interest is now larger than for March, dealers said. May futures ended 0.9percent down at 190.50 euros.
The euro rose against the dollar on Friday, making European grain more expensive for export at a time of strong competition from Black Sea and Argentine origins. Traders noted increased purchase interest from major importer Egypt ahead of the Ramadan period later in February.
But Black Sea export countries held a price advantage over western Europe, tempering reaction to talk this week about recent sales of French wheat to Egypt.
“Market estimates are that Russia shipped just over 900,000 tons of wheat to Egypt in January, showing Russia had a firm grip on recent Egyptian purchases,” a German trader said.
Egyptian purchase interest for Black Sea 11.5percent protein wheat for February shipment was reported at USD247-USD253 a ton, cost and freight (c&f) included, to Egypt.
Ukrainian 11.5percent protein wheat on Friday was quoted at about USD247 a ton c&f Egypt, with Russian close at USD248. French wheat was around USD254 c&f depending on euro and Euronext strength, above Romanian at USD252, the trader said. Chicago wheat, a global benchmark, also eased.
Wheat was curbed by a backdrop of ample supply, after finding mid-week support in a rally for soybeans, sparked by US President Donald Trump’s comments that China would expand purchases of US soybeans. Easing concerns about severe cold in northern hemisphere wheat belts also removed support for prices.
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