Euronext wheat steady after two-week low

Euronext wheat edged higher on Friday, steadying after a near two-week low a day earlier in line with a rebound in Chicago, while traders awaited the outcome of a latest import tender by Algeria.
Benchmark May milling wheat futures on Paris-based Euronext settled up 0.25 euros, or 0.1%, at 191.00 euros ($206.05) a tonne.
It remained close to Thursday's near two-week low of 190.50 euros as the risk of a deep economic downturn due to a coronavirus epidemic hung over financial markets while a wave of precautionary buying of cereal staples appeared to have eased.
New-crop prices on Euronext rose by more, with December futures settling up 1.50 euros at 187.50 euros, as attention turned to dry crop weather across Europe and the Black Sea region.
"The market fell back over the past week and now looks well priced," Nathan Cordier of consultancy Agritel said.
"People are looking ahead to next season, for which we have lower wheat sowings in Europe and the United States plus crop conditions that could deteriorate in Russia."
Weekly data from farm office FranceAgriMer showed the condition of French soft wheat crops declined slightly in the week to March 30 and remained well below the level seen a year ago.
A tender held on Friday by Algeria raised the prospect of a first major export sale of new-crop French wheat, with state grains agency OAIC seeking July shipment. Results were pending.
However, talk that negotiations in the tender were protracted, with OAIC and suppliers reportedly far apart in pricing, helped curb gains on Euronext by the close, traders said.
In Germany, cash premiums in Hamburg remained well over Paris levels as the strong flow of wheat exports continued from German ports.
Standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at around 4.5 euros over the Paris May contract. Buyers were offering around 3.5 euros over Paris.

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