In Germany, standard 12% protein wheat for March delivery in
Hamburg was offered for sale at level the Euronext May contract,
with buyers seeking about 2 euros under.
In France, selling by farmers ahead of spring deadlines to
release grain stored by cooperatives added supply pressure on
Euronext, dealers added.
Euronext rapeseed extended losses.
May futures set a new two-year low for a front-month
price at 440.00 euros, as a surplus in Europe hung over
the market.
($1 = 0.9289 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in
Hamburg; Editing by Shilpi Majumdar)
PARIS, March 21 (Reuters) - Euronext wheat fell again on
Tuesday to reach its lowest in nearly 18 months as improved
supply prospects and a rally in equities and crude oil led
investors to sell wheat, dealers said.
The extent of the fall surprised dealers, however, given a
more optimistic mood in financial markets after steps to shore
up banks and with expectations the U.S. Federal Reserve may
soften its interest rate stance on Wednesday. May milling wheat on the Paris-based Euronext was
down 2.2% at 252.25 euros ($271.57) a tonne by 1707 GMT.
It earlier dropped to 251.50 euros, the lowest front-month
price since late September 2021.
Technical pressure increased after Euronext broke successive
chart floors, while a sharp rise in the euro against the dollar further dented export sentiment as cheaper Black Sea
supplies were set to keep flowing.
A grain export corridor from Ukraine was renewed on Saturday
though Russia said it only agreed to a 60-day extension.
"The extension of the Ukrainian shipping agreement has
generated more cheap sales offers of Ukrainian wheat this week
at well under $300 FOB a tonne," a German trader said.
Sales offers on Tuesday included a panamax shipment of
Ukrainian 11.5% protein wheat of up to 30,000 tonnes for March/
first half April shipment at $285 FOB per tonne from a corridor
port.
Traders said Ukrainian 11.5% protein wheat was offered in
export markets in 30,000 tonne shipments for March/April as
cheap as $304 c&f Egypt and Tunisia, or $305 c&f Algeria.
"I think offers this cheap could create a demand side
problem as importers may delay purchases in the hope prices will
fall even further," the trader said.
Jordan on Tuesday made no purchase in a tender for 120,000
tonnes of wheat.
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