PARIS: Euronext wheat futures steadied in afternoon trading on Friday, with chart levels and a weaker euro encouraging a pause after an earlier slide to a six-week low slide that some traders saw as overdone given tightening global wheat supplies.
Benchmark December milling wheat on Paris-based Euronext was unchanged on the day at 198.25 euros ($229.41) a tonne by 1600 GMT.
It earlier fell to 196.00 euros, a level not seen since July 24, after breaching chart support at 198 euros but was set to regain the threshold at the close.
Over the week, the Euronext benchmark was down about 3.5 percent.
Chicago wheat, the global benchmark also struck a six-week low before recouping most of its losses.
Wheat markets were dampened this week by Russia playing down the idea of export restrictions, despite expectations for tight supplies given a smaller harvest and a brisk start to the export season.
But many market participants consider that Russian export curbs remain a possibility and that an anticipated drop in supplies in most major exporting countries will keep prices firm.
"Wheat prices should hold up," one futures broker said. "You can imagine a Russian export tax at some stage."
Grain markets were also awaiting further direction from next Wednesday's monthly US government crop forecasts that will update projections for US corn and soybean harvests as well as global supply and demand for wheat.
In France, soft wheat exports outside the European Union totalled 622,000 tonnes in July, up 34 percent from the same month last year, led by 475,000 tonnes shipped to Algeria.
Vessel loadings in the past month have confirmed the dominance of Algeria as the leading destination for French wheat.
Front month September saw volatile trading on participants settled positions before Monday's expiry.
The contract was last down 19.75 euros, or 9.7 percent, at 183.00 euros.
Comments
Comments are closed for this article.