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Adds closing price, weekly fall
PARIS, Feb 24 (Reuters) – Euronext wheat fell to a new one-month low on Friday, pressured by export competition from Russia and expectations that a wartime shipping corridor from Ukraine will continue.
An absence of fresh military escalation in Ukraine on the first anniversary of Russia’s invasion also encouraged prices to ease, traders said.
Chicago wheat Wv1 also hit a one-month low, with the U.S. market facing additional pressure from a strong dollar .DXY.
May wheat BLK3, the most active contract on Paris-based Euronext, settled down 1.3% at 280.00 euros ($295.60) a tonne.
It earlier fell to 278 euros, slightly under a previous one-month low of 279 euros on Wednesday, but again found chart support around that level.
Over the week, the contract was down nearly 4%.
“I think there is relief in the market today that Russia does not seem to have so far started a major new offensive to mark the first anniversary of the war or intensified attacks on Ukraine which could have disrupted Ukraine’s grain export shipments,” one German trader said.
After a purchase of 240,000 tonnes of Russian wheat by Egypt in a tender this week, traders are watching to see if Russian supplies are competitively priced again in a large tender to be held by Turkey next week.
Offers for Russian wheat on Friday included 30,000 tonnes of 12.5% protein wheat for shipment from the port of Novorossiysk in the first half of March at $305 a tonne FOB.
“There is still lots of Russian wheat available,” a futures dealer said.
In Germany, standard 12% protein wheat for March delivery in Hamburg was offered for sale at a premium of about 7 euros over the Euronext May contract, with little purchase interest.
In France, wheat export premiums have eased while barley premiums have firmed this week, with activity focused on shipping large barley cargoes to China. WHEAT/RTR, GRAIN/SHP/FR
French crops have adequate moisture for winter, despite a record dry spell that has raised concerns for spring, while in Germany and Poland regular rain and mild weather were keeping crops in good condition, analysts said.
($1 = 0.9472 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Jan Harvey and Louise Heavens)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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