PARIS, Jan 15 (Reuters) - Euronext wheat futures edged higher on Thursday, supported by an easing in the euro and news of a large import tender to be held by Saudi Arabia, traders said.
March milling wheat BL2H6, the most active position on Euronext's Paris-based futures, settled 0.3% up at 189.25 euros ($219.64) a metric ton.
The benchmark remained within reach of a contract low of 185 euros struck last month, with ample global supply hanging over the market.
The euro EUR= fell against a broadly stronger dollar, making western European grain cheaper overseas. FRX/
Saudi Arabia issued a tender to purchase around 595,000 tons of hard milling wheat, with results expected on Monday.
“The Saudi Arabian wheat tender is welcome news of new demand with over half a million tons set to be removed from the market, which is suffering from heavy oversupply,” one German trader said.
“The disappointing factor is that the west EU is likely to have little chance of being supplied as the Black Sea is much cheaper. I would expect Russia and possibly Romania to be the main contenders.”
Russian 12.5% protein wheat is currently around $225-$228 a ton free on board (FOB) for the shipment periods sought in the Saudi tender, about $10-$14 cheaper than German and other Baltic Sea region 12.5% wheat, he said.
Romanian was about $4-$5 cheaper than German.
Argentine wheat is currently the world’s cheapest large-scale export origin but the country's disappointing new-crop quality may mean it may not be used to supply the high-quality 12.5% protein sought in the Saudi tender, traders said.
But Argentine wheat continued to provide competition for European wheat in North Africa, with more talk that merchants may turn to Argentine supply to cover sales to Algeria.
Consultancy Expana reduced its monthly forecast for European Union soft wheat exports in 2025/26, to 28.8 million tons from 30 million tons, citing sluggish shipments from northern EU countries and Romania.
The International Grains Council raised its forecast of world wheat production, contributing to its projection of record global grain output in 2025/26.
"Without a material weather threat or geopolitical escalation, rallies look corrective rather than structural," British merchant ADM Agriculture said of grain futures.
Prices at 1737 GMT | |||
Last | Change | Pct Move | |
Paris wheat BL2H6 | 189.25 | 0.50 | 0.26 |
Paris maize EMAc1 | 190.00 | 1.25 | 0.66 |
Paris rapeseed COMc1 | 471.75 | 1.50 | 0.32 |
CBOT wheat Wv1 | 512.50 | 0.00 | 0.00 |
CBOT corn Cv1 | 421.25 | -0.75 | -0.18 |
CBOT soy Sv1 | 1054.75 | 12.25 | 1.18 |
WTI crude oil CLc1 | 59.06 | -2.96 | -4.77 |
Euro/dollar EUR= | 1.16 | 0.00 | -0.26 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton | |||
($1 = 0.8616 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Susan Fenton)
((gus.trompiz@thomsonreuters.com))
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