Euronext wheat higher to one week high

Spot wheat futures on Euronext rose to a one week high on Wednesday amid talk of logistical snags at France's main export hub, while new-crop prices ticked lower as the return of rain to much of Europe eased concerns about dryness. Benchmark May milling wheat on the Paris-based Euronext exchange settled 1.25 euros, or 0.7 percent, higher at 188.50 euros ($211.95) a tonne. The contract earlier touched a one-week high of 189.00 euros, extending a rebound from Monday's two-week low of 184.75 euros.
The strength in the May futures, the last remaining position for 2018 harvest wheat, reflected tensions on the French physical market, traders said. A busy loading programme at Rouen, France's largest grain port, was creating logistical bottlenecks and prompting some market participants to seek extra supply cover, they said.
Physical premiums in Rouen rose on Wednesday. Reaction to news that Algeria had bought at least 120,000 tonnes in an import tender on Tuesday was restrained. While French wheat was expected to be chosen for some of the optional-origin order in its main overseas market, there was talk that US wheat might also be used, traders said. New-crop September wheat on Euronext inched down 0.25 euros, or 0.1 percent, to 177.50 euros a tonne.
Showers in France since Tuesday and forecasts for rainfall in much of Europe this week were tempering concern about dry crop conditions. Weekly Euronext data showed financial investors had expanded their net short position in the exchange's wheat futures and options in the week to March 29. In Germany, cash premiums in Hamburg were stable, underpinned by a brisk export programme and slack farmer selling.
Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale unchanged at around 8 euros over Paris May. "The export programme is supportive, however a lot has already been purchased by export trading houses so it is not pushing the market up," one trader said. One vessel was loading about 60,000 tonnes of German wheat for Oman and others were also loading 60,000 tonnes for Saudi Arabia and 55,000 tonnes for South Africa.
Feed wheat remained above milling wheat.