IKAR in Mass and Industry Media

EU wheat down to 7-week low as ample global supplies weigh

Reuters

PARIS, Sept 6 (Reuters) - European wheat prices dipped to a seven-week low on Tuesday, still pressured by hefty global supplies which were also weighing on U.S markets.

December milling wheat on the Paris-based Euronext, closed down 1.1 percent at 159.25 euros a tonne unofficially, the lowest since July 15.

Operators were awaiting the results of Algeria's milling wheat tender which closes on Wednesday. They expect offers for German, U.S., British, Polish, Swedish and Lithuanian wheat. Despite the small size of this year's harvest there could also be some French wheat offers, they said.

Algeria is traditionally France's largest wheat purchaser but the poor French crop this year means other origins will take a share of the market.

Traders said state buyer OAIC had not changed its tender specifications, notably the maximum bug damage level, which, if lowered, could open the door to Black Sea wheat, or the specific weight measure, which is particularly poor in France this year.

In a new sign of ample supplies worldwide, Russia's IKAR agriculture consultancy upgraded its forecast for Russia's 2016 wheat crop by 2 million tonnes to 72 million tonnes.

German cash market premiums were marked up to compensate for early day weakness in Paris and on hopes of more export business with Algeria tendering.

Standard wheat with 12 percent protein content for September delivery in Hamburg was offered for sale at 2.5 euros over the Paris December contract versus 1.5 euros on Monday. Buyers were seeking 1.5 euros over Paris.

In Poland, prices have been supported during the past week by technical short-covering and a lack of farmers selling at current low market levels.

Polish mills were offering to pay 600-650 zlotys a tonne (138.3-149.8 euros) for 12 percent protein wheat for September delivery, up about 10 zlotys on the week, depending on the region.

"Poland's harvest is now complete except for some minor areas in the Masurian region in the north east, but this grain is not usable commercially," a Polish trader said.

"More farmer selling could be generated to make room for Poland's corn crop, which looks large and is expected to start in mid October."

Export prices were down about 5 zlotys on the week, with purchase offers between 680-685 zlotys a tonne for 12.5 percent wheat for September delivery.

One vessel carrying 30,000 tonnes of wheat has just left Gdynia for Algeria, traders said.

Prices at 1631 GMT

                             Last  Change    Pct     End     Ytd
                                            Move    2015     Pct
                                                            Move
  Paris wheat Dec          159.25   -1.75  -1.09  184.50  -13.69
  Paris maize Nov          160.75   -1.75  -1.08  177.00   -9.18
  Paris rape Nov           377.50   -2.00  -0.53  374.00    0.94
  CBOT wheat Sep           397.50   -1.75  -0.44  476.50  -16.58
  CBOT corn Dec            327.00   -1.50  -0.46  358.75   -8.85
  CBOT soy Nov             958.00    5.50   0.58  871.25    9.96
  WTI crude oil             44.41   -0.03  -0.07   37.04   19.90
  Euro/dlr                   1.12    0.01   0.86                

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

(Reporting by Valerie Parent in Paris and Michael Hogan in Hamburg; writing by Sybille de La Hamaide; editing by David Clarke)

13.09.16

All viewing: 108
Discuss