off-the-wire

UPDATE 1-EU wheat holds at 19-month low, rapeseed tumbles

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds wheat closing price, rapeseed fall) PARIS, April 25 (Reuters) - Euronext wheat eased on Tuesday to hold at a 19-month low while rapeseed dropped nearly 5%, as participants looked beyond risks to a Black Sea grain deal and focused on ample short-term supplies and negative economic sentiment in wider markets. September wheat , the most active contract on Euronext, settled 0.4% down at 242.75 euros ($266.22) a tonne. It earlier eased to 241.00 euros, the weakest second-month price since September 2021 and slightly below a previous 19-month low hit on Monday. The Kremlin reaffirmed its position on Tuesday that the Black Sea grain deal, which allows maritime exports from Ukraine, is not working for Moscow. "I think there is growing belief in the market that the Ukrainian shipping agreement may not now be extended," one trader said.


"But the negative comments from the Russians have been going on for so long that there seems a general acceptance that something will change." Concern about a possible halting of Ukrainian sea exports has been tempered by large supplies in Russia, though some traders argue prices do not reflect risks to Black Sea supply due to a bearish stance among investment funds. Chicago wheat fell further to a 21-month low, also pressured by forecasts for significant rainfall this week in drought-affected U.S. winter wheat zones. Traders were awaiting a wheat import tender called by Tunisia for Wednesday, with the apparent exclusion of Black Sea origins raising the prospect of sales for Western European wheat. Rapeseed, widely used in biodiesel, was dragged down by crude oil as investors fretted over the economic outlook. August rapeseed on Euronext ended down 4.8% at 437.00 euros a tonne, after earlier hitting a one-month low. Weekly data on European Union grain exports and imports was postponed due to a technical problem.


Rain this week in much of Europe was expected to keep crops in good shape, with the notable exception of drought-hit Spain. In Germany, standard 12% protein wheat for May delivery in Hamburg was offered for sale around level the Euronext May contract, with buyers seeking one euro under following trade at one euro under on Monday. ($1 = 0.9118 euros) (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Paul Simao and Grant McCool)

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