Front-month March closed 1.00 euro lower at 172.50 euros a tonne, after earlier equalling a six-month high of 173.75 euros touched in the previous session. "We are continuing to see the US price trend play off against the currency factor. Today, the euro has been a brake," a Euronext trader said. The session was also marked by a large amount of spread trading involving the March and May futures, traders said.
European Union exports got a boost from news that Morocco awarded the entire volume of 263,636 tonnes of EU soft wheat sought in a tender held as part of a preferential-tariff quota. Weekly official data showed that EU soft wheat exports so far this season had reached 15.5 million tonnes, including 238,000 tonnes this week.
Consultancy Strategie Grains kept unchanged its monthly forecast of 2017 EU soft wheat production at 143.8 million tonnes, estimating cold weather had caused no additional damage to crops since a month ago. In Germany, cash market premiums in Hamburg dropped in slacker purchase demand as buyers regarded recent international price strength as based more on investment fund flows than fundamental factors.
Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale down 0.5 euro at 2.5 euros over the Paris May contract, buyers were seeking 2 euros over. In Poland, prices rose in the last week due to higher international markets and strong export demand. Exporters raised purchase prices by 5-10 zloty in the last week to between 745-750 zloty a tonne (172.4-173.7 euros) for 12.5 percent protein wheat for February delivery to port silos. For 14 percent protein buying prices were raised by 15 euros on the week to 760-765 zloty a tonne.
"There is a good lineup of ships in Polish ports loading wheat for the EU and other destinations although some are fairly small vessels," one Polish trader said. One vessel has just loaded 40,000 tonnes of Polish wheat for Nigeria. "However the port terminals are showing first signs of readiness to talk about providing some space in export silos for March, which means they have less interest from exporters, so the export pace could slow down from March onwards."
Copyright Reuters, 2017