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PARIS, Aug 26 (Reuters) – Euronext wheat turned higher in choppy trading on Friday as dealers reacted to exchange rate moves and assessed northern hemisphere crop prospects and export competition.
December wheat BL2Z2 on Euronext was up 0.6% at 319.25 euros ($319.57) a tonne by 1551 GMT. The contract had earlier extended a fall from Wednesday’s one-week high of 329.50 euros.
A sharp rise in the euro against the dollar had weighed on Euronext, before the euro pared gains in volatile trading marked by comments from the U.S. Federal Reserve’s chief. FRX/
Dealers said technical adjustments linked to the upcoming expiry of September futures BL2U2, as well as demand from consumers taking advantage of the earlier fall, had helped Euronext to firm.
Grain markets were awaiting final results from a major U.S. Midwest tour of corn and soybean crops. GRA/
The European Commission on Thursday cut its monthly forecast for European Union corn production by 10% to a seven-year low, reflecting severe drought.
But the EU’s executive also revised up its estimate of this year’s EU soft wheat crop by over 2 million tonnes.
In Germany, the wheat harvest has been better than expected, with the winter wheat crop estimated up 4.6% on 2021 to just over 22 million tonnes, the agriculture ministry said on Friday.
European weather forecasts showing more showers in the week ahead also eased concerns about upcoming planting.
In Germany, sellers of standard 12% protein wheat for September delivery in Hamburg were offering an unchanged 20 euros a tonne over the Euronext December contract, with buyers seeking about 18 euros over.
Egypt’s purchase of 240,000 tonnes of Russian wheat this week, along with more loadings of Ukrainian grain under a safe-passage agreement, were putting attention on availability of cheaper Black Sea supplies and eclipsing strong recent EU exports. GRAIN/SHP/FR
“Cheap sales offers of wheat from Ukraine and Russia are continuing to gain market attention. Larger volumes are being offered each day for shipment through the (Ukraine) corridor ports,” a German trader said.
“For me, the main challenge is the demand side, with importers hoping for higher volumes from both Ukraine and Russia in the near future.”
($1 = 0.9990 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Jan Harvey)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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