EU wheat stuck at two-week low as export competition weighs globally

Published Dec 1, 2024

Tridge summary

Euronext wheat futures have dropped to a two-week low due to competition from cheaper Black Sea and Argentine supplies, as market participants consider the impact of Russia's planned export quota for later in the season. The euro's rebound, a slide in the rouble, and the results of international tenders have also contributed to the pressure on Euronext prices. The Russian export quota of 11 million tons of wheat from February 15 until June 30, 2025, is significantly lower than the previous year's allocation of 29 million tons, including corn and barley. Meanwhile, soft-wheat sowing in France is slightly ahead of recent average paces, facilitated by drier weather.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Euronext wheat futures dipped on Friday to touch a two-week low, as competition from cheaper Black Sea and Argentine supplies hung over the market while traders assessed Russia’s announcement of an export quota for later this season. A lull in U.S. markets, with Chicago futures re-opening for a shortened session after Thursday’s Thanksgiving closure, kept activity light on Euronext. March wheat BL2H5, the most-active position on Paris-based Euronext, settled down 0.2% at 221.50 euros ($233.75) per metric ton, after reaching its lowest since Nov. 15 at 220.75 euros. Euronext prices have been pressured this week by a rebound in the euro, a slide in the rouble and results from international tenders that have underscored competition from Black Sea supplies. In addition to Russian and Ukrainian 11.5% protein wheat for December/January shipment, offered at under $220 a ton FOB, new-crop Argentine 11.5% wheat offers were providing tough competition at around $212-$215 a ton FOB, a German ...

Source: Hellenic Shipping News