EU wheat stays weak as Black Sea competition hangs over market
PARIS, Oct 23 (Reuters) -Benchmark wheat futures on Euronext eased for a fourth session on Wednesday as traders set uncertainty over Russian government intervention in wheat trade against signs of continuing export competition from Black Sea supplies.
December wheat BL2Z4, the most active position on Paris-based Euronext, was down 0.5% at 222.50 euros ($239.88) a metric ton by 1544 GMT.
It earlier slipped to 221.00 euros, its lowest since Oct. 1 and slightly below a previous three-week low on Tuesday, but found support from a lower euro and a chart floor at 220 euros, traders said.
"The market is seeking to find out whether the Russian minimum export prices of $245 and $250 a ton FOB for shipments in November and December will be obeyed or evaded," one German trader said.
"Most published price lists are holding at this level but realistic market levels are about $234-$238."
Russian wheat remained cheaper than western European supplies, while Ukrainian prices were lower, according to traders.
Wheat prices have also been curbed by easing weather concerns, with parched Black Sea, Argentine and U.S. wheat belts receiving some rain while soggy fields in western Europe were set for a drier end to the month.
In Germany, repeated rain in past weeks has disrupted some winter wheat and rapeseed sowings but nationally the problem is not serious, a German analyst said.
"It's an annoyance and there are some noticeable areas which could not be sown with wheat yet," the analyst said.
"But nationally sowing is progressing reasonably well and there is still time to catch up. I think Germany could sow 2.8 million hectares of wheat this autumn."
This would be up from Germany's rain-reduced wheat area of 2.6 million hectares sown for this summer's crop.
Financial investors increased their net short position in Euronext wheat last week, data published by Euronext on Wednesday showed.
($1 = 0.9276 euros)
Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
