EU wheat stuck at two-week low as export competition weighs
PARIS, Nov 29 (Reuters) -Euronext wheat futures dipped on Friday to touch a two-week low, as competition from cheaper Black Sea and Argentine supplies hung over the market while traders assessed Russia's announcement of an export quota for later this season.
A lull in U.S. markets, with Chicago futures re-opening for a shortened session after Thursday's Thanksgiving closure, kept activity light on Euronext. GRA/
March wheat BL2H5, the most-active position on Paris-based Euronext, settled down 0.2% at 221.50 euros ($233.75) per metric ton, after reaching its lowest since Nov. 15 at 220.75 euros.
Euronext prices have been pressured this week by a rebound in the euro EUR=, a slide in the rouble RUB= and results from international tenders that have underscored competition from Black Sea supplies. GRA/EU
In addition to Russian and Ukrainian 11.5% protein wheat for December/January shipment, offered at under $220 a ton FOB, new-crop Argentine 11.5% wheat offers were providing tough competition at around $212-$215 a ton FOB, a German trader said.
“Markets are waiting for signs of a significant slowdown in Russian wheat exports but Russian prices are low and shipments big,” he said.
“Argentine wheat is also being sold in African and Asian markets at very cheap prices, way below Russian levels.”
Russia on Friday outlined an export quota of 11 million tons of wheat from Feb. 15 until the end of the season on June 30, 2025, as part of measures to curb domestic food prices.
The quota was down sharply from an allocation of 29 million tons, which also included corn and barley, for the same period last season.
Market reaction was subdued, partly due to recent speculation that the wheat quota might drop to 10 million tons or less following a weather-reduced harvest in Russia, traders said.
But some still saw the prospect of a slowdown in Russian shipments and of the EU picking up more export demand.
In France, soft-wheat sowing has moved ahead of the average pace of recent years, data from farm office FranceAgriMer showed on Friday, as drier weather this month helped farmers catch up on rain delays earlier in autumn.
($1 = 0.9476 euros)
Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Rod Nickel
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