EU wheat falls from 2-week top, spot rapeseed up on river disruption
PARIS, Dec 12 (Reuters) -Euronext wheat eased on Thursday after hitting a two-week peak, pressured by weakness in Chicago grains and persisting export competition despite doubts over Russian supply, traders said.
March wheat BL2H5 on Euronext settled 0.8% down at 229.00 euros ($240.52) a metric ton. It earlier rose to 231.75 euros, its highest since Nov. 22.
Chicago wheat Wv1 fell back from a two-week high hit on Wednesday, curbed by weekly U.S. export sales at the low end of expectations and forecasts of rain in U.S. winter wheat belts. GRA/
Wheat had drawn support this week from a monthly U.S. Department of Agriculture report, in which the USDA lowered its forecast for U.S. stocks, as well as market chatter that a planned Russian export quota for the second half of the season may be reduced.
But competitive prices for Black Sea supplies and harvest progress in Argentina and Australia kept the market in check.
"The market has already factored in the loss of Black Sea supplies due to government intervention on export policy, but this will be partially offset by higher year on year production seen from Canada, Argentina, and Australia," British merchant ADM Agriculture Ltd said in a note.
Thursday's announcement of a wheat import tender by Saudi Arabia brought fresh demand while underscoring the lack of competitiveness of western European wheat.
“You would have to put your money on Black Sea and southern hemisphere suppliers winning the Saudi business,” a German trader said.
Russian supplies may not be in the running as Moscow strives to cool domestic prices through export curbs.
But EU Black Sea countries Romania and Bulgaria along with Argentina, Brazil and Australia were seen providing ample competition in the Saudi tender, traders said.
In Europe, some dealers were starting to close down positions in the run-up to year-end holidays.
Some 7,000 tons of Swedish 11.5% milling wheat for January/March delivery was offered at around 5 euros under Euronext March FOB on Sweden's west coast.
In oilseeds, front-month February rapeseed COMG5 on Euronext ended 0.7% up at 538.00 euros per ton, after earlier climbing to a three-week high of 547.25 euros in heavy volumes.
Traders said Euronext's announcement late on Wednesday that it will suspend physical delivery to river ports in eastern France for the February contract, following an accident downstream in Germany that has blocked traffic, led operators to cover positions.
($1 = 0.9521 euros)
Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg
Editing by Keith Weir
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