(Adds closing price, more comment)
PARIS, April 24 (Reuters) - Euronext wheat ended
slightly firmer on Monday after reaching its lowest level since
2021 during a choppy session as traders assessed mixed signs
regarding supply from the Black Sea region.
September wheat , the most active contract on the
Paris-based Euronext exchange, settled 0.1% up at 243.75 euros
($268.88) a tonne.
It earlier eased to 241.50 euros, the weakest second-month
price since September 2021, to extend a steep fall from
Friday.
Renewed warnings from Russia that it could pull out of a
wartime agreement enabling maritime exports of grain from
Ukraine maintained a risk to Black Sea trade, though large
Russian supplies were capping prices.
"Old-crop supply remains pretty heavy in the eyes of the
market," a futures dealer said. "Russian stocks will take some
time to be absorbed."
There were signs Russia is trying to step up shipments to
clear stocks, after a draft regulation proposed unused export
quotas be reallocated to firms that have filled theirs.
"There is talk Russian exporters offered wheat for sale in
past days in export markets at between $265 to $270 a tonne FOB,
below the price floor of $275 a tonne FOB unofficially set for
Russian exporters," a German trader said.
Moves to maintain Ukrainian exports via the European Union
after opposition from eastern EU countries also were tempering
Black Sea supply concerns.
The slight recovery on Euronext was led by May wheat , which ended 1% higher at 245.00 euros after earlier
setting the lowest level for a front-month contract since September 2021 at 240.50 euros.
May futures, which expire on May 10, attracted some interest
after the spread versus September turned negative, dealers said.
Rainfall in the past month has benefited cropland in much of
the EU, but Spain and northern Italy remain affected by drought,
the EU's crop monitoring service said.
Traders were monitoring cold weather forecast this week in
central Europe, though possible frosts were not expected to be
severe enough to damage crops.
($1 = 0.9065 euros)
(Reporting by Gus Trompiz in Paris and Michael Hogan in
Hamburg; Editing by Sharon Singleton and Paul Simao)
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.