European wheat futures little changed in thin volumes

European wheat futures were little changed in thin volumes on Monday as New Year holiday closures in the United States and elsewhere encouraged many traders to stay on the sidelines. A weaker euro lent some support to Paris futures, but the quiet market lacked the impetus to overcome chart resistance tested last week, traders said.
Front-month March milling wheat on the Paris-based Euronext exchange was unchanged on the day at 168 euros a tonne by 1625 GMT, close to the 168.50 euro high touched in each of the previous two sessions. "There is strong chart resistance on the March contract," one futures dealer said.
"The supply situation is pretty heavy this season, so it's going to be hard to go much higher even if there is a poositive effect from the euro. Spot prices on Euronext ended 2016 showing a 3 percent annual decline after pressure from swelling global supply was partly countered by a slide in the euro and a poor French harvest.
The euro fell against the dollar on Monday, halting a rebound at the end of last week. The European currency had slipped to a near 14-year low against the dollar earlier in December. In Germany, standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 4.5 euros over the Paris March contract. Buyers were seeking an unchanged 3.5 euros over.
In Poland, mills raised purchase offers by 5-10 zloty on the week to 640-700 zloty a tonne (144.9-158.6 euros) for 12.5 percent protein content wheat, depending on region, for January delivery. Exporter purchase offers for 12.5 percent protein supplies were unchanged on the week at 730-735 zloty a tonne for January delivery to ports.
"Export of Polish milling wheat and corn is under way with unexpectedly high speed, but sales offers are very limited and it is very difficult to buy grains in large volumes," one Polish trader said. "Either farmers and local traders are holding on to supplies waiting for higher prices, or official harvest statistics have underestimated the crop. I suspect a little of both."
In exports, one vessel with 30,000 tonnes of Polish wheat left Gdynia in late December for South Africa and another ship sailed with 30,000 tonnes for Barcelona in Spain. One vessel is loading 50,000 tonnes in Gdynia for an unknown destination and another is loading in Stettin with 40,000 tonnes for Mozambique, he said. In other export news, Algeria launched a tender to buy milling wheat for March shipment, setting the bid deadline for Thursday.