PARIS, April 13 (Reuters) - Euronext wheat fell on
Thursday to a three-week low as a one-year peak for the euro
against the dollar dented export sentiment while traders
remained unperturbed by Russian criticism of a wartime Black Sea
grain agreement.
A fall in U.S. futures also pressured Euronext. May milling wheat on Paris-based Euronext settled
1.5% lower at 247.25 euros ($273.31) a tonne, breaching chart
support at 250 euros.
It earlier fell to 245.50 euros, its weakest since March 23
and near an 18-month low hit on that date.
The euro extended a rally against the dollar as
latest U.S. economic data fuelled expectations of a pause in
interest rate hikes. A stronger euro makes European grain more expensive for
export.
“The euro’s strength is really disappointing and is bad news
for new EU sales, with cheap Russian and other Black Sea wheat
offered in international markets at a time demand is low
anyway,” one German trader said.
Analyst firm Strategie Grains cut its forecast for European
Union soft wheat exports this season, though it revised up its
projection for 2023/24.
In France, farm office FranceAgriMer trimmed its outlook for
2022/23 French soft wheat exports.
Russia on Thursday said there would be no extension of the
UN-brokered grain corridor from Ukraine beyond May 18 unless the
West removed obstacles to Russian grain and fertiliser exports.
"There is a lack of visibility on what may happen with
Russia but market participants have generally learned to deal
with that uncertainty," Benoit Pietrement, head of
FranceAgriMer's grain committee, told reporters.
Ample stocks and the approach of early harvesting in the
northern hemisphere also encouraged traders to play down an
immediate supply threat from Black Sea tensions.
There was concern among European traders that subsidy
changes by Morocco could let Black Sea supplies gain market
share in this season's biggest outlet for EU wheat.
Morocco has been the biggest German wheat export destination
so far in April, with two ships sailing with around 90,000
tonnes between them, traders said.
Other ships are set to depart in coming days with 30,000
tonnes for Guinea and 30,000 tonnes for Mauritania.
($1 = 0.9046 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in
Hamburg; Editing by Kirsten Donovan)
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
