Paris wheat mixed, firm US market supports new crop

HAMBURG: Paris wheat futures were mixed on Wednesday, with new crop prices supported by a rise in Chicago markets while old crop prices fell in technically driven trade.

New-crop September milling wheat on the Paris-based Euronext exchange unofficially closed up 0.50 euro or 0.2 percent at 174.25 euros ($196.82) a tonne.

The contract earlier set a one-month low for the second session in succession, hitting 173.25 euros before recovering.

Front-month old crop May wheat

fell 1.25 euros, or 0.6 percent, to 185.00 euros, after earlier hitting a one-month low at 184.25 euros. Dealers again cited technical adjustments following Monday's expiry of options on May futures.

Traders said export sentiment was mixed, with a strong loading programme in France set against uncertainty over demand for the final weeks of the season that ends on June 30.

Morocco was a focus for French traders, with several vessels due to load in view of an April 30 deadline for cargoes to arrive in the North African country under a zero-tariff import window.

However, there was uncertainty over how a preferential-tariff tender for European Union wheat announced by Morocco would work. The tender, closing on April 25, calls for wheat to arrive by May 31.

In Germany, cash premiums in Hamburg were raised to compensate for the fall in Paris as the busy programme of ship loadings in German ports once more supported.

Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale at around 7.0 euros over Paris May, against 6.5 euros over on Tuesday.

"This week's ship loadings in German ports continue at a good pace with ships in Hamburg loading 25,000 tonnes for south Europe and 50,000 tonnes also in Hamburg for South Africa," one German trader said.

Another ship in Rostock is loading 55,000 tonnes for Mozambique.

"Farmers are unwilling to sell old crop at lower prices," the trader said. "But I think Germany's old crop export supplies

will start to be sold out in late May after our poor harvest last year."

"We are now seeing more optimistic forecasts for the new crop in Germany although dryness is still a worry, especially in some eastern areas."

Germany's 2019 wheat harvest will jump 20.6 percent on the year to 24.44 million tonnes with rising expectations of a recovery after the drought-reduced harvest last year, farm cooperatives said.