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EU wheat slips to new 2-month low on Ukraine export deal optimism

Reuters · 11/15/2022 12:55
EU wheat slips to 2-month low on Ukraine export deal optimism

- Euronext wheat slipped on Tuesday to a fresh two-month low on growing optimism that a grain export corridor from Ukraine will be extended beyond a looming deadline, traders said.

December milling wheat BL2Z2 on Paris-based Euronext settled 1.4% lower at 319.50 euros ($331.55) a tonne.

It earlier hit its weakest since Sept. 6 at 318.00 euros, slipping below a previous two-month low reached on Monday.

The opening of a chart gap in opening trade and a sharp rise in the euro against the dollar added to selling pressure, traders said.

Chicago wheat also fell. GRA/

Hopes that the wartime corridor from Ukraine will be prolonged past its initial Nov. 19 expiry date grew further.

Russia's Foreign Minister Sergei Lavrov on Tuesday said that the United Nations had told him of written U.S. and EU promises to remove obstacles to exporting Russian grain and fertilisers.

Moscow had previously referred to constructive talks on Friday with U.N. officials, although an extension of the agreement has yet to be announced.

Expectations that the Ukraine corridor will be maintained, as well as increasing shipments from Russia, were tempering concerns about adverse weather in the run-up to harvesting in southern hemisphere exporters Argentina and Australia.

European Union data showed a sharp weekly rise in 2022/23 soft wheat exports, putting the volume so far this season 10% above last season's level.

Traders reported that Chinese buyers had booked two cargoes of French wheat for January-March shipment, adding to large sales earlier this season.

($1 = 0.9637 euros)

(Reporting by Gus Trompiz in Paris; Editing by Alexander Smith)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.))