"Quite a few importing countries are now harvesting their local crops while in Europe we're about to enter the critical mid-May to mid-June period for crops that can make or break the harvest." A purchase by Algeria in a tender on Wednesday, estimated by traders at around 470,000 tonnes, along with concerns about hot weather forecast for next week in France, had lent some support to Euronext prices in the previous session. But traders said there was little fresh export demand on Friday while weekly crop data from farm office FranceAgriMer confirmed that recent rain had brought some relief to dry French grain belts.
Some 76 percent of French soft wheat crops were rated good or excellent by May 8, up 1 point from a week earlier, FranceAgriMer said, ending a run of four consecutive weekly declines. In Germany, low demand from exporters and also flour mills weighed on prices. "Export demand remains weak with the euro too strong to generate new export sales," one German trader said. "Flour demand from bakers is also low so in turn wheat buying by mills is also sluggish."
Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale at 1 euro over the Paris December contract against 2 euros over on Thursday, buyers were seeking level Paris. "Against this background, high prices are again being offered by the feed industry in the South Oldenburg market so milling wheat is being sold for feed use." Feed wheat for May delivery in Germany's South Oldenburg feed wheat market was again quoted about 6 to 7 euros over Hamburg milling wheat on Friday at around 180-181 euros a tonne.
Copyright Reuters, 2017