EU: Wheat futures edge higher, barley physical premiums drop in France
European wheat futures edged higher on January 17, in keeping with the trend in Chicago, while the market awaited clearer signs of export demand for the second half of the season, Reuters reported.
March milling wheat, the most active contract on the Paris-based Euronext exchange, was up 0.50 euro at 203.50 euros a tonne by 1709 GMT.
“We are starting to see some more export activity in German ports and one ship is currently loading about 50,000 tonnes of wheat in a German harbour believed to be for shipment to South Africa,” one trader said.
“Exports are coming back to life especially to west Africa and South Africa.”
An expected slowdown in exports from key competitor Russia, however, has yet to materialise.
“Internationally we are still awaiting signs that Russian wheat export flows will be reduced after the huge Russian sales in past months but I cannot see real signs of this, although Black Sea ports have long vessel lineups to load and the deepening winter to contend with,” the trader added.
Chicago wheat was up slightly as traders kept a close watch on developments in U.S.-China trade talks, amid recurring rumours of Chinese purchases of U.S. crops.
In France, grain price movements have been concentrated in barley this week, with physical premiums dropping by 9 euros in Rouen since Monday, January 14.
“We’re in a wave of panic selling of winter barley, which people had expected would help make up for a deficit in spring malting barley in northern Europe,” a French broker said.
Drought and heatwaves slashed last year’s spring barley harvest in major growing regions such as Scandinavia, leading some market participants to bet on demand for French winter barley, which can be used for making malt.
However, malt makers had managed to find alternative supply and some French winter crop was now being offloaded onto the feed barley market, traders said.
In Germany, cash premiums in Hamburg were flat.
Standard bread wheat with 12 percent protein for January delivery in Hamburg was offered for sale unchanged at 3 euros over Paris March.
Feed grain demand after last summer’s drought-damaged harvest again kept feed wheat over milling wheat prices.
Feed wheat in the South Oldenburg market for January/March delivery was offered for sale above milling wheat at around 217 euros a tonne, with buyers at around 216 euros.
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