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Adds closing price, weekly decline
PARIS, Feb 17 (Reuters) – Euronext wheat was little changed on Friday, consolidating after a volatile week in which prices hit a one-month high before retreating as traders digested news from the Black Sea region.
May wheat BLK3, now the most active contract on Paris-based Euronext, settled 0.2% higher at 291.50 euros ($311.56) a tonne.
Over the week, the contract was nearly 1% lower.
An escalation in fighting in eastern Ukraine and renewed Russian criticism of a wartime agreement allowing Ukrainian grain exports unsettled the wheat market at the start of the week, encouraging investors to cover short positions.
But the failure of Euronext futures to break chart resistance at 300 euros created selling pressure, while many traders played down the immediate threat to Black Sea supply.
“On the Black Sea corridor, there were the Russian remarks but people don’t really believe it’s at risk,” a futures dealer said.
Negotiations will start in a week on extending the U.N.-backed grain export corridor, a senior Ukrainian official said on Friday.
Chicago wheat Wv1 edged higher as U.S. market participants prepared for a three-day holiday weekend. GRA/
Tunisia booked 100,000 tonnes of soft wheat and 75,000 tonnes of barley in a tender on Friday, according to traders, with prices suggesting Black Sea supplies would be used to cover the deal.
In France, export activity remained focused on barley shipments to China. GRAIN/SHP/FR
In its first crop progress report since early December, farm office FranceAgriMer estimated that 93% of French soft wheat crops were in good or excellent condition in the week to Feb. 13.
The data supported market expectations that crops have not yet been stressed by dry February weather, though traders are watching to see if widespread showers forecast for the middle of next week materialise.
($1 = 0.9356 euros)
(Reporting by Gus Trompiz; Editing by Kirsten Donovan)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.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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