Euronext wheat slipped on Thursday as traders weighed up healthy export demand against risks posed by the spreading coronavirus outbreak in China. March milling wheat, the most active contract on Paris-based Euronext settled down 0.75 euros, or 0.4%, at 193.00 euros ($212) a tonne.
On Wednesday the contract had hit a one-week high of 193.75 euros, after rebounding from a more than three-week low on Monday that was linked to concerns over the economic impact of the coronavirus in China. "Physical traders haven't changed their view that the market should go up due to short-term exports," a futures dealer said.
"There is a bit of interest from consumers and there will be more if there is another price fall on factors like China." Shipments of soft wheat from France held at a six-year high in January despite port strikes that delayed loadings and caused logistical difficulties, Refinitiv data showed.
A one-day strike by port workers on Thursday was expected to have halted loading activity at major grain terminals like Rouen and La Pallice, traders said. However, there was talk of fresh export sales for shipment later in the season as French wheat remained competitively priced and strike disruption was seen subsiding, traders said.
In Germany, steady export demand was keeping cash premiums in Hamburg firm. "In dollar terms German and Black Sea region wheat are priced about the same," one German trader said. "This means purchase inquiries about German wheat are being received regularly," the trader said.
Comments
Comments are closed for this article.