Paris wheat flat after 2-week highs, US holiday caps gains
Adds market ending unchanged, closing price paragraph three
HAMBURG/PARIS, Sept 2 (Reuters) -European wheat futures ended flat on Monday after earlier hitting two-week highs, still underpinned by last week's technical rebound, but lacking fresh impetus amid a holiday closure on U.S. markets.
Euronext saw strong rises last week on buying interest after hitting 5-1/2 month lows.
December milling wheat BL2Z4, the most-active position on the Paris-based Euronext, ended unchanged at 216.50 euros ($239.54) per metric ton.
The contract earlier hit its highest since Aug. 19 at 218.25 euros as it extended its recovery from a 5-1/2 month low of 204.75 euros last Monday.
"Matif (Euronext) recouped 10-12 euros in a short space of time. The market was near contract lows on December and technically oversold," a futures dealer said.
"But Russian wheat remains much more competitive so that limits the price rebound."
Crop setbacks in the European Union, including the worst French wheat harvest since the 1980s, have helped underpin prices, but ample global supply and stiff export competition from Black Sea origins have kept a lid on the market.
Australia, another major exporter, sharply increased its official forecast for its upcoming harvest following rain in key cropping regions.
In France, export activity remained light, with barley loadings for China continuing to account for the bulk of grain shipments, data compiled by LSEG showed. GRAIN/SHP/FR
Traders said Moroccan buyers were thought to have booked several cargoes of French wheat last week, with talk that merchants would draw on large stocks of better-quality wheat from last year's harvest like in other early season loadings.
“I think rises are restrained by very low prices offered by Russia in export markets and a lack of new import demand so far this week,” a German trader said. GRA/TEND
Russian 12.5% protein wheat was on Monday quoted at about $215-$216 a ton FOB for September Black Sea shipment.
Reporting by Michael Hogan and Gus Trompiz; editing by Jason Neely and Tomasz Janowski
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.
