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EU wheat falls on Chicago, hefty supplies

27 сентября 2016 года

PARIS, Sept 26 (Reuters) - European wheat futures prices edged lower on Monday following a fall in Chicago and pressured by a lack of demand at a time of hefty supplies, traders said.

December milling wheat on Paris-based Euronext, was down 0.6 percent by 1537 GMT to 160.25 euros a tonne.

CME Group's December EU wheat contract was also lower, down 0.5 percent at 162.00 euros a tonne. The premium of the contract over Euronext has shrunk over the past days.

Chicago Board of Trade December soft red winter wheat was down 1.6 percent at $3.98-1/4 per bushel, tracking corn lower as it lacked impetus in the face of hefty global supplies, despite the prospect of renewed demand from India and Egypt.

"The huge volumes available in the Black Sea (region) are lying in wait and should prevent, if they have efficient logistics, any major rebound," consultancy Agritel said in a weekly note. Activity on the French cash market was thin.

"The market has found some kind of balance pending an potential new developments in other producing areas like the southern Hemisphere," a broker said.

Traders also pointed to very dry conditions in France that disturbed the start of winter wheat sowings, which could bring some support to prices if delays were to last.

Russian wheat export prices rose last week for the first time since mid-August, buoyed by demand from Egypt after it dropped its zero-tolerance policy on wheat containing the ergot fungus, consultancy IKAR said.

German cash market premiums in Hamburg firmed on stronger demand and also to compensate for Friday's fall in Paris.

Standard wheat with 12 percent protein content for October delivery in Hamburg was offered for sale at 2 euros over the Paris December contract against 1 euro over on Friday. Buyers were seeking 1 euro over Paris.

In Poland, prices were little changed with many farmers busy planting winter grains and rapeseed and harvesting maize.

"Demand from Polish mills was quiet with some estimated to have good nearby supply cover for the coming six weeks but purchase interest from exporters was more active," a Polish trader said.

Mills are offering to buy 12.5 percent protein wheat at 590-630 zloty a tonne (137.2-146.7 euros) for October delivery, unchanged on the week.

Exporters were offering to buy 12.5 percent protein wheat at 680-685 zloty a tonne for prompt delivery, little changed on the week.

"Exporters are still active buyers and are believed to be completing outstanding shipments to Saudi Arabia and Algeria," the Polish trader said. "Three large vessels are currently loading wheat in Gdansk/Gdynia and one vessel is loading in Szczecin."

Prices at 1540 GMT

                                 Last  Change    Pct     End     Ytd
                                                Move    2015     Pct
                                                                Move
  Paris MAT wheat Dec          160.25   -1.00  -0.62  184.50  -13.14
  Paris CME wheat Dec          162.00   -0.75  -0.46                
  Paris maize Nov              161.75   -1.00  -0.61  177.00   -8.62
  Paris rape Nov               374.50   -1.25  -0.33  374.00    0.13
  CBOT wheat Sep               398.25   -6.50  -1.61  476.50  -16.42
  CBOT corn Dec                330.75   -5.75  -1.71  358.75   -7.80
  CBOT soy Nov                 947.50   -7.50  -0.79  871.25    8.75
  WTI crude oil                 46.03    1.55   3.48   37.04   24.27
  Euro/dlr                       1.13    0.00   0.42                

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Valerie Parent and Michael Hogan in Hamburg, writing by Sybille de La Hamaide, editing by William Hardy)

Source: Reuters  |  #grain   |  Comments: 0   Views: 58

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