PARIS: Euronext wheat edged up on Wednesday after a three-day fall as a weather-fuelled rebound in Chicago futures offset pressure from a firmer euro that was adding to a tough export outlook, traders said. May milling wheat, the most active position on Euronext, was up 0.7 percent at 191.50 euros (USD226.37) a metric ton at 1603 GMT. Chicago wheat added over 1percent as the US market recovered from a 2percent slide on Tuesday.
High winds in the US Plains on Tuesday had raised concern about possible damage to wheat fields. In Ukraine, meanwhile, a cold snap following a thaw may damage winter wheat and rapeseed, farmers’ union UAC said on Wednesday. In France, traders were monitoring flooding in some western areas. While immediate damage to grain fields was expected to be limited, forecasts of more rain in the week ahead could pose risks for upcoming spring planting, traders said.
A backdrop of ample global supply and stiff export competition nonetheless kept a lid on prices. The euro rose against the dollar, making European grain more expensive.
Traders said demand from some importing countries may ebb during the Muslim holy month of Ramadan starting on Wednesday. However, purchase interest was reported in Egypt for up to 25,000 tons of Ukrainian/Black Sea 11.5percent protein wheat at around USD250 a ton cost and freight included (c&f) for March shipment, and at around USD253 a ton c&f for 12.5percent protein wheat for February. In Poland, prices fell in the last week with export competition remaining hard and Polish export shipments slack.
Polish 12.5percent protein wheat fell about 10 zloty a ton in the last week to about 800 zloty (189.7 euros) a ton for February/March delivery to ports. “Farmers are still reluctant sellers due to the cold winter and expected winterkill, although the trade expects only isolated frost damage,” one Polish trader said.
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