PARIS: Euronext wheat edged down on Friday, tracking weakness in Chicago as forecast rain in parched US wheat belts encouraged traders to book profits before the weekend.
An easing in crude oil prices, as investors assessed chances for further US-Iran peace talks, also curbed grain markets. September futures on Euronext settled 0.4percent lower at 209.25 euros (USD245.22) after earlier equalling Thursday’s two-week high of 212.00 euros.
Tepid export demand also capped prices on Euronext, with producers holding large stocks as the end of the season approached. “Export demand remains overall very weak, with the exception of the Saudi Arabian wheat tender, with buyers still hoping for some kind of peace agreement between Iran and the US which could bring prices down,” one German trader said.
A Saudi Arabian import tender to purchase 710,000 metric tons of hard 12.5percent protein milling wheat closes on Friday with results expected on Monday. Shipment was sought to Saudi Arabian Red Sea ports only, avoiding the Hormuz strait.
“I think the Black Sea region has a lead on prices in the 12.5percent protein sector and also shipping costs,” another trader said. “I think Russia, Ukraine and Romania are favourites to win the Saudi business.” The condition of French soft wheat crops declined slightly last week as a dry spell continued in the European Union’s biggest grain producer, data from farm office FranceAgriMer showed on Friday. Ratings of French soft wheat crops showed 83percent were in good or excellent condition by April 20, down from 84percent a week earlier but up from 74percent a year ago. Dry weather in France since last month, which has helped accelerate maize planting, was starting to cause concern.
“Weather charts are showing rain in two weeks. This will be critical both for wheat and maize,” a futures dealer said. In oilseeds, May rapeseed on Euronext jumped by as much as 5.7percent to a contract high of 578.75 euros a ton, also a three-year high for a front-month price, in what dealers said was a technical squeeze before its expiry next week. The contract settled up 2.1percent at 559.50 euros.
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