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Adds closing prices, German premiums
HAMBURG, Nov 11 (Reuters) – European wheat futures were little changed on Friday, having hit seven-week lows hit on Thursday, underpinned by strength in U.S. futures and wider commodity markets.
Dealers awaited news about between the United Nations and Russia on an extension to the agreement on a shipping corridor for Ukraine’s grain exports.
December milling wheat BL2Z2 on the Paris-based Euronext unofficially closed down 0.25 euros, or 0.08%, at 327.00 euros ($337.99) a tonne.
A public holiday in France meant some market participants were absent.
Chicago wheat rose on Friday, supported by strong commodities and equities markets and a weaker dollar, plus hopes that China’s easing of COVID-19 restrictions could boost demand.
“Outside of the Black Sea, one of the main factors influencing price is the dollar weakness which is strengthening commodities,” said Rabobank commodities analyst Paul Joules.
“But we are seeing Euronext wheat trading in a range today, in part because the market is awaiting the result of discussions regarding the grain export corridor extension.”
In Germany, attention was on a large tender from Saudi Arabia for 595,000 tonnes of wheat.
“EU wheat will face very hard competition from Russian wheat in the Saudi tender,” one trader said. “Russian wheat is being offered at very cheap prices in export markets, with the country having a large crop to dispose of. This was seen in the purchase by Egypt late on Thursday.”
Forecasts of a reduced wheat crop in Argentina could lessen competition for EU wheat, including in African markets.
Premiums in German ports remained supported by shipment of previous export sales and a lack of farmer selling.
Sellers of standard 12% protein wheat for November delivery in Hamburg were seeking a premium of about 12 euros over Euronext December, with buying interest around 10 euros over.
(Reporting by Michael Hogan Editing by David Goodman and Louise Heavens)
((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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