European wheat prices ended little changed on Tuesday with a softer euro helping to offset weakness in Chicago. March milling wheat on Paris-based Euronext settled at an unchanged 173.00 euros after earlier peaking at 173.25 euros, a price not seen since August 15. Dealers said the weakness of the euro helped to improve the outlook for exports which was also supported by firm spot Black Sea prices.
The spot prices for the old Russian crop have been rising recently as farmers hold on to their grain due to a strengthening rouble and following a cut in the US Department of Agriculture's supply forecasts for the 2016/17 season. "February looks like being a reasonable month for German exports although probably not so busy as January when I estimate about 900,000 tonnes of wheat was exported by Germany," one German trader said.
"There is not much of a difference between German premiums for higher protein content wheat grades and premiums in Poland and Lithuania, which is encouraging." One ship is sailing from Hamburg in coming days with 30,000 tonnes of wheat for Morocco and another has sailed from Hamburg in the last week with 35,000 tonnes of wheat for Tanzania, traders said. German cash market premiums in Hamburg were steady, supported by expectations of steady export business in coming weeks.
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