Western European wheat prices were mostly little changed on Friday as traders made technical adjustments during a holiday lull on US grain markets. Rapeseed futures in Europe again showed sharper movements as a slide in crude oil encouraged rapeseed to pull back from contract highs struck on Wednesday.
December milling wheat on the Paris-based Euronext settled unchanged on the day at 168.25 euros a tonne, consolidating below a three-month high of 170.00 euros seen earlier in the week.
March, now the most active contract on Euronext, settled up 0.50 euro at 169.75 euros a tonne. CME Group's December EU wheat fell 3 euros to 178.25 euros as it gave up some of its large premium over Euronext in sparse volumes. In Chicago, wheat edged lower, with traders saying the expiry of December options on Friday could lead to technically driven movements.
Chicago Board of Trade crop futures were closed on Thursday for the Thanksgiving holiday and only reopened at 1430 GMT on Friday for shortened session. "The Chicago market is looking pretty flat but we'll have to wait for the US close to see if the expiry of options fuels activity," one trader said. "Rapeseed is consolidating but it has the potential to resume its rally."
February rapeseed ended down 2.50 euros or 0.6 percent at 401.50 euros a tonne. It was easing back from Wednesday's contract high of 406.75 euros but held above the psychological 400 euro threshold. A rise in the euro, which was recovering from its lowest level against the dollar since March 2015, also curbed European prices on Friday, although the steep fall in the euro this month remained a positive factor for the market.
"The strength of the euro today is disappointing but the overall weak trend in the euro this week is very positive for the export outlook," a German trader said. "If the euro weakness holds I expect a strong rise in German exports early in the new year." However, slow current export activity coupled with the US holiday lull kept the German market quiet. Standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 2 euros over the Paris March contract. Buyers were seeking 1 euro over.