Euronext wheat rose on Wednesday in a rebound from contract lows supported by an easing in the euro and an upturn in Chicago futures. March milling wheat, the most active contract on Paris-based Euronext, settled 1.50 euros higher at 156 euros a tonne.
It had earlier extended its recent fall to a life-of-contract low of 154 euros, also a four-month low for a spot price. But technical support on price charts, a retreat in the euro after a three-year high against the dollar, and a bounce in Chicago wheat following Tuesday's one-month low all encouraged Paris futures to steady, traders said.
"We're seeing a slight rebound with the US market that's steadying and chart support around 155 euros," a futures dealer said. "But there's not much to get excited about. The question remains how much the Russians are going to be able to export, rather than any weather concerns in the US or elsewhere." Stiff competition from Russia and other Black Sea origins have curbed exports of European Union wheat, leading analysts and traders to cut their expectations for EU and French exports.
In Germany, cash market premiums in Hamburg were generally flat with the main demand again coming from inland markets, especially for animal feed, rather than exports. Standard bread wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at about 4 euros over Paris March.
Feed wheat prices in Germany's South Oldenburg market were again sharply above milling wheat, with February delivery offered for sale down 1 euro at around 171 euros a tonne and buyers seeking 170 euros. "I think a strong break downwards by the euro from its three-year high this week is needed if we are (to) generate major new export sales," one German trader said.
"Market attention is also turning towards waterlogged fields in north Germany after the very rainy start to the winter. Too much water can smother wheat plants, cutting yields, while they are vulnerable to sudden deep frosts."