EU wheat eases in US holiday lull
The front-month position was almost unchanged over the week, having fallen to a contract low of 192.75 euros on Tuesday before rebounding to a one-week at 199.25 euros on Thursday as investors adjusted short positions.
A slight rise in the euro, which remained near a 3-1/2 year high against the dollar struck earlier this week, also capped Euronext prices. 'The market still faces a bearish combination of good crop prospects in the west EU and Black Sea,' one German trader said. 'Cheap Russian and other Black Sea prices are likely to win export business in the near future.
But demand is anyway thin, with importers delaying purchases, expecting prices to fall further if harvest pressure mounts.' New-crop Russian 11.5% protein wheat was quoted on Friday below $220 at around $217-$219 a ton FOB, 12.5% at $224-$226.
Ukrainian new crop feed was on Friday quoted as low as 185-195 euros a ton including delivery to north Germany/the Netherlands, he said. There was little reaction to news that the European Commission will offer Ukraine an annual import quota of 1.3 million tons of wheat under a revised trade agreement.
The quota, which will cut inflows of Ukrainian wheat compared with the 4-6 million tons imported annually under quota-free access since the start of Russia's invasion, was seen reshuffling trade but with limited price effects.
'It will affect intra-EU trade, with importers in Europe buying more from France or Germany instead of Ukraine,' a French trader said.
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