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EU wheat rises after first French sale to Egypt in nearly a year

EU wheat rises after first French sale to Egypt in nearly a year

reuters.com · 12/29/2021 12:58
EU wheat rises after first French sale to Egypt in nearly a year

- European wheat prices rose on Wednesday after Egypt's first purchase of French wheat in almost a year raised hopes of further exports in a market that has been dominated by Black Sea origins.

Benchmark March milling wheat BL2H2 on Paris-based Euronext closed 0.6% up at 282.25 euros ($320.10) a tonne.

Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), bought 300,000 tonnes of wheat in an international tender for shipment Feb. 15 to Mar. 3, including 60,000 tonnes of French wheat, it said on Wednesday. nC6N2RN014

The last time GASC bought French wheat was in early February. nL1N2K81OA

Since then the office favoured cheaper offers for Black Sea wheat origins including Russia, Romania and Ukraine.

"It is only one cargo but certainly good news for French and West European wheat exports in general," one trader said.

Offers to GASC released earlier in the day had shown that French wheat was offered at the lowest FOB price to Egypt, though higher shipping costs from France meant Ukrainian and Romanian wheat were cheapest with cost and freight (c&f) included. nL1N2TE0GL

German traders were cheered by signs that the dominance of the Black Sea region in wheat export markets was weakening, as shown in price offers.

"It was encouraging to see French wheat back in the picture on FOB terms, although the higher shipping costs from western Europe still give the Black Sea an advantage in the big Middle Eastern markets," one German trader said.

"But the EU shipping was just under $10 a tonne more expensive than the Black Sea. A relatively small drop in Euronext prices to compensate for the high shipping costs could change the EU export outlook sharply.

"Russia’s export taxes seem at last to be too much of a burden for Russian wheat in Egypt’s tenders."

Premiums in Germany were generally nominal because many market participants were absent on holiday.

Standard 12% protein wheat for delivery in Hamburg from January onwards was offered for sale at about 10 euros over Euronext March BL2H2. Purchase interest seen at around 8 euros over.


Prices at 1732 GMT







Last

Change

Pct Move

End 2019

Ytd Pct Move

Paris wheat March BL2c1

282,25

1,75

0,62

188,75

49,54

Paris maize Jan EMAc1

238,75

-2,25

-0,93

168,50

41,69

Paris rape Feb COMc1

767,75

-1,25

-0,16

411,50

86,57

CBOT wheat Wv1

788,25

4,75

0,61

558,75

41,07

CBOT corn Cv1

607,00

2,25

0,37

387,75

56,54

CBOT soy Sv1

1365,75

-2,25

-0,16

955,50

42,94

WTI crude oil CLc1

75,69

-0,29

-0,38

61,06

23,96

Euro/dlr EUR=

1,13

0,00

0,31

1,1210

1,20

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne


(Reporting by Sybille de La Hamaide in Paris and Michael Hogan in Hamburg
Editing by David Goodman)

((Sybille.deLaHamaide@thomsonreuters.com; +336 8774 4148;))