Peris: European benchmark wheat futures were slightly firmer on Wednesday, underpinned by stronger US markets and good export flows, but trade was restrained as some participants had left early ahead of Thursday's Ascension Day holiday. New-crop September milling wheat on the Paris Euronext market was up 0.25 euro or 0.1 percent at 161.50 euros a tonne at 1508 GMT. Front-month May, which expires next week, rose 0.25 euro or 0.1 percent to 150.50 euros.
Paris prices remained near contract lows, curbed by large inventories and good prospects for this years harvest in Europe, but healthy export demand was helping underpin the market, traders said. The European market was adjusting to Tuesdays sharp closing fall in Chicago followed by a stronger US market on Wednesday, dealers said. A steadying in the euro below Tuesdays export-punishing eight-month high also lent some support to futures. I get the impression the market doesnt really want to go much lower, one futures dealer said. The euro easing off its highs is also helping prices. The European Union cleared 848,000 tonnes of soft wheat export licences this week, above the average weekly pace this season, but the total volume so far in 2015/16 was 7 percent below the year-earlier level.
German cash prices in Hamburg were flat, although premiums were marked down as dealing was switched to calculation against the Paris December contract from May used on Tuesday. Outright prices are unchanged with support coming from good export demand. Exporters are seeking wheat for shipments to the Middle East, Turkey and Africa. Farmer selling is also thin which is supporting the market. Standard wheat with 12 percent protein for May delivery was offered for sale at 8.5 euros under the Paris December contract. Buyers were seeking 8.0 euros under Paris December. There is also optimism that part of the 620,000 tonnes of wheat purchased by Saudi Arabia in a tender on Monday will be sourced in Germany. (Source: BR)
