Euronext wheat slips as export competition hangs over market
Adds closing prices and new lows
PARIS, Nov 27 (Reuters) -Euronext wheat futures eased on Wednesday as a rebound in the euro and results from latest import tenders underscored competition from Black Sea supplies, traders said.
March wheat BL2H5, the most active position on Paris-based Euronext, settled1.4% down at 222.50 euros ($235.27) per metric ton, after touchinga near two-week low at 222.00 euros.
Chicago wheat Wv1also fell as traders adjusted positions before Thursday's Thanksgiving holiday, despite a drop in the dollar as investors wrestled with tariff proposals from U.S. President-elect Donald Trump. FRX/
Purchases by Tunisia on Wednesday and Algeria on Tuesday were expected to be mainly sourced from the Black Sea region.
“Low Black Sea cash prices are a downward drag on the market while cheap offers are also appearing seasonally from Argentina,” one German trader said.
“Russian 11.5% (protein wheat) for December remains well under $220 a ton. The EU cannot beat that in the main export sales.”
A slide in the rouble against the dollar has also reinforced the competitiveness of Russian wheat for export.
Traders have been watching for a possible slowdown in Black Sea shipments as harvest supplies are eroded and Russia looks to curb its exports.
However, large volumes were continuing to be shipped from Russia and Ukraine, also leading traders to play down immediate risks from escalation in the countries' war.
In France, a busy programme of November exports for Morocco was continuing at Rouen, with seven vessels loading or expected this week, according to LSEG data. GRAIN/SHP/FR
Butexport demand was otherwise thin and traders said French supplies appeared to have been overlooked again by Algeria in its tender amid diplomatic tensions.
Supply prospects were also curbing wheat markets, with weather improving for newly planted northern hemisphere crops and harvesting advancing in southern hemisphere exporters Argentina and Australia.
Benchmark rapeseed futures on Euronext dropped below the 500 euro support floor as they tracked losses in Canadian canola, which faces the risk of U.S. tariffs that might push more Canadian exports towards Europe.
February rapeseed COMG5 settled 2.7% down at 493.00 eurosper ton after hitting a six-week low at 492.25 euros.
Financial investors reduced their net short position in Euronext wheat and trimmed their net long position in rapeseed last week, data from the exchange showed on Wednesday.
($1 = 0.9457 euros)
Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg;Editing by Elaine Hardcastle
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