EU wheat steadies on demand wave, Trump tariff plan weighs on rapeseed
PARIS, Nov 26 (Reuters) -Euronext wheat edged higher on Tuesday, recovering from the previous day's slide as renewed weakness in the euro and a series of import tenders bolstered export sentiment.
March wheat BL2H5, the most active position on Paris-based Euronext, was up 0.2% at 225.75 euros ($236.38) a metric ton by 1721 GMT, holding above Monday's one-week low of 224.25 euros.
Chicago wheat Wv1 gave up earlier gains in choppy trading as participants assessed U.S. President-elect Donald Trump's tariffs plan while also factoring in a sharp improvement in U.S. wheat growing conditions. GRA/
The euro eased against the dollar as investors digested Trump's announcement of a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on imports from China. GRA/
Wheat traders were also reacting to tenders by importers. GRA/TEND
"Yesterday's fall looked a bit overdone," one futures dealer said. "You have importers like Algeria in the market and at the same time there's a bit of short-covering."
Algeria was holding a tender on Tuesday, though its requirement of shipment to two shallow ports suggested a limited volume may be booked, according to traders.
“More import demand has been visible today with purchase tenders from several buyers, which is supportive” one German trader said.
However, western European wheat continued to face strong competition from Black Sea supplies, despite uncertainty over Russian government curbs on exports.
Market talk was of Russian 12.5% December wheat offered on Tuesday at around $225 per ton FOB and 11.5% at $218.
"EU cannot beat current low Russian prices unless the Russian government holds its own exporters back,” another trader said.
European Union soft wheat exports so far this season are down 30% from a year ago, official data showed on Tuesday.
February rapeseed COMG5 on Euronext was down 1.4% at 507.00 euros a ton, tracking weakness in Canadian canola RSF5 as Trump's proposed tariff on Canadian goods threatened to hurt large oilseed flows between the North American neighbours.
($1 = 0.9550 euros)
Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg. Editing by Mark Potter
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
