By the same time most-active July on the Chicago Board of Trade was down more than 2.2 percent. "We are also weighed down by the euro/dollar. If we go past the $1.1 we may well go towards $1.15 and this prospect is paralysing the market," a Euronext trader said.
The euro rose to a one-week high of $1.0989 against the dollar after the release of a weak US manufacturing report. Traders noted a pick-up in activity on the CME's European wheat futures where a lower quality translates into a price differential between the two contracts, with Euronext trading around 2.50 euros per tonne above CME.
In Germany cash market selling premiums in Hamburg were little changed with sales being made of milling wheat to the German animal feed industry because of high prices offered for feed wheat. Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale unchanged at 1 euro over the Paris December contract, while buyers were seeking parity.
In Poland prices were firm with strong Polish exports in recent months reducing domestic supplies and opening up the local market to imports. "Polish trading companies are seeking to buy wheat, corn and barley from abroad including Germany, Lithuania, Slovakia and the Czech Republic to fill a sudden supply gap in the domestic grain market," one Polish trader said. "The supply gap opened quickly and suddenly, I suspect the reason to be that high exports have reduced stocks." Domestic milling wheat prices rose 15 zloty on the week to 730-745 zloty a tonne (173.5-177 euro) for 12.5 percent protein for immediate delivery. Polish milling and feed wheat prices were at about the same level, a similar picture to Germany.
Copyright Reuters, 2017