EU wheat stuck near lows as harvest optimism outweighs export hopes

April 29 - Euronext wheat hovered near contract lows on Tuesday as favourable crop conditions in much of the Northern Hemisphere kept attention on ample supply and tempered talk of low prices stirring export demand for French wheat.

September wheat BL2U5, the most active position on Euronext's Paris-based futures market, was down 0.2% at 206.00 euros a metric ton by 1602 GMT, holding just above Monday's contract low of 205.75 euros that had marked the weakest second-month price BL2c2 in eight months.

Chicago wheat futures extended losses to fresh contract lows, pressured by forecasts for more rain in the drought-affected U.S. Plains after showers last week led to a sharp improvement in winter wheat crop ratings. GRA/

Crop conditions across Europe and the Black Sea region were also seen as relatively favourable after recent rainfall, though traders were monitoring warm weather in northern France and a cold spell in Russia.

Euronext was nonetheless finding support in expectations that price lows could attract some late-season demand for Western European wheat.

"There is a debate about whether Euronext can hold the 200-euro level, but in the meantime French wheat is looking competitive in Middle Eastern and North African markets, especially Egypt," a German trader said.

There has been unconfirmed market talk since the end of last week that two cargoes of French wheat were sold to Egypt. GRA/EU

"Market talk is that more French deals could be on the way for Egypt as French prices are competitive against the Black Sea and France does want to clear out some storage space before this summer's harvest," the trader said.

In the key Egyptian market, he said French and Romanian 11.5% protein wheat were on Tuesday both around $256-$257 a ton cost and freight (c&f) included for May shipment to Egypt.

Russian and Ukrainian wheat were both more expensive, around $258-$259 a ton c&f to Egypt.

A poor French export campaign has weighed on overall European Union shipments. Weekly EU data on Tuesday showed that EU soft wheat exports so far in 2024/25 were down 34% from a year ago, though figures for some countries, including France, were incomplete.