off-the-wire

Euronext wheat ticks higher with economic outlook in focus

Kitco Media
By Reuters
Published:
Updated:
Reuters
PARIS, Feb 3 (Reuters) - Euronext wheat edged up on Friday, supported by a sharp drop in the euro against the dollar, with grain markets awaiting fresh fundamental impetus from next week's supply and demand outlook from the U.S. Department of Agriculture. Traders said competition from Black Sea wheat supplies, highlighted by Egypt's purchase on Thursday of 535,000 tonnes expected to be sourced from Russia, continued to curb prices, while grain market attention is also turning to the prospects for this year's harvests. March milling wheat on Paris-based Euronext settled up 0.5% at 284.50 euros ($308.17) a tonne.


Deferred positions for 2023 crop delivery outperformed nearby months as they had on Thursday. Euronext has lacked clear direction this week after rebounding from an 11-month low in late January.


Chicago wheat eased on Friday as the dollar surged after much stronger than expected U.S. jobs data. The data tempered expectations of an approaching end to interest rate hikes, hopes fuelled by U.S. Federal Reserve comments this week about disinflationary signs. In France, wheat export premiums have eased this week during a lull in demand following a brisk first half of the country's export season. Egypt's tender on Thursday further dampened export sentiment in western Europe. "Russian exporters are still able to push out over half a million tonnes for quick shipment starting at the end of this month," one German trader said. "If EU exporters were hoping that higher shipping costs could compensate for cheap Russian FOB prices, the tender showed this is not the case." Standard 12% protein wheat for February delivery in Hamburg was offered for sale at a premium of about 11 euros over the Euronext March contract, but with little purchase interest. Colder weather forecast in Europe next week was seen as favourable for crops, with chilly temperatures potentially
strengthening plants after mild spells this winter while not projected to bring severe frosts. ($1 = 0.9232 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Alexander Smith)

Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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