EU wheat steadies after lows as exports assessed

Euronext wheat edged up on Tuesday to recover from contract lows with support from a rebound in Chicago, though uncertainty over western European exports hung over the market, traders said.

March milling wheat BL2H4, the most active position on Paris-based Euronext, settled 0.5% higher at 219.50 euros ($240.07) a metric ton.

On Monday it dropped to a life-of-contract low at 217.25 euros, pressured by a slide in Chicago wheat Wv1 as losses in crude oil weighed on grains. GRA/

A technical bounce in Chicago on Tuesday encouraged Euronext to consolidate. GRA/

A clutch of import tenders, including one held by Egypt on Tuesday, lent some support, though signs of continuing competition from Black Sea supplies curbed Euronext.

Traders were awaiting results from Egyptian state buyer GASC, but initial offers showed Black Sea origins were cheaper than French wheat.

“There had been hopes that French FOB (free on board) prices were moving pretty close to Russian after recent Euronext price falls, but Russia still holds a substantial price lead according to the GASC offer list and this despite the Russian government’s export price floor,” a German trader said.

“Romania is also looking very cheap and Ukrainian wheat was again offered cheapest with shipment via Romania but still carrying a strong war risk threat to deliveries.”

There were persistent rumours that China may have cancelled some sales of U.S. wheat, including talk that some volumes could be transferred to France, though traders said there was no clear information so far.

European Union soft wheat exports so far in 2023/24 have reached 15.84 million tons, down 11% from a year earlier, EU data showed.

Traders were monitoring a spell of freezing temperatures in France, which could add to problems for wheat growers after a rain-disrupted sowing campaign, though some said any damage may be too localised to worry the market.
Source: Reuters (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Susan Fenton)