EU wheat at 1-week high as Egypt tender boosts export sentiment
PARIS: European wheat futures rose to a one-week high on Thursday as competitive offers of U.S. wheat in an Egyptian tender bolstered hopes that demand will shift away from top wheat exporter Russia during the rest of the season.
Grain markets have been waiting for signs of a tailing off in Russia's wheat exports after huge volumes in the first months of the 2018/19 season. A slowdown in Russian shipments could boost demand for wheat from rival exporters like the United States and the European Union.
Benchmark March milling wheat on Paris-based Euronext settled 1.75 euros, or 0.9 percent, higher at 204.25 euros a tonne, after touching its highest since Nov. 15 at 204.50 euros in closing deals.
With U.S. markets closed for the Thanksgiving holiday, reaction to Egypt's import tender was focused on Euronext.
Egypt, the world's biggest wheat importer, bought 120,000 tonnes of U.S. wheat in a tender on Thursday along with 60,000 tonnes of Russian wheat and 60,000 tonnes of Romanian wheat.
This was the second tender in a row in which it had booked U.S. wheat and the first time since June it had bought less wheat from Russia than another origin.
"The trend in international prices shows that export demand can be met by origins other than Russia and Ukraine," one trader said.
News of an unexpected shipment of French wheat to China also buoyed export sentiment.
A vessel is due to call at the northern French port of Dunkirk to load what would be the first cargo of French wheat for China in nearly five years, shipping data showed.
In Germany, cash premiums in Hamburg were little changed, with attention still focused on feed grain imports.
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale at 2.0 euros over Paris December.
Feed wheat in Germany's South Oldenburg market for November/December delivery was offered for sale above milling wheat, up 1 euro at around 215 euros a tonne, with buyers seeking 213 euros.
Traders have reported that two import shipments of Ukrainian maize - one of 35,000 tonnes and the other of about 30,000 tonnes - are due to arrive in Germany by the end of November, while about 54,000 tonnes of Bulgarian feed wheat is also expected to arrive this month.
"Low water on German rivers and canals after the dry weather in recent weeks is making it difficult and expensive to transport wheat from south Germany to the feed compounders in the north, so the imports will be welcome," a German trader said.