EU wheat pauses as energy upheaval assessed
PARIS, March 19 (Reuters) - European wheat futures ended little changed on Thursday as the market paused after recent gains spurred by upheaval in energy markets amid the deepening Middle East conflict.
May milling wheat BL2K6 on Euronext settled 0.2% down at 207.00 euros ($239.09) a metric ton.
The contract earlier rose to 210.25 euros, approaching a seven-month peak of 212.50 euros from last week, before paring gains in moderate volumes.
Deferred positions for the 2026 harvest ended slightly higher.
"Grains are tracking oil in fits and starts, but it's quieter today," a futures dealer said.
Brent oil LCOc1 jumped above $119 a barrel after Iran attacked energy facilities across the Middle East following Israel's strike on its South Pars gas field, before the benchmark shed most of its gains. O/R
Wheat markets were also taking a breather after a rally in U.S. futures on Wednesday when worries over dry weather affecting U.S. crops fuelled buying. GRA/
Euronext prices were further capped by a sharp rise in the euro EUR= against the dollar, which makes European grain more expensive for export.
A backdrop of ample global supply and a lull in demand before the Eid holiday period in Muslim countries were keeping a lid on wheat prices, traders said.
In limited demand, traders reported that an Algerian buyer was seeking about 30,000 tons of Ukrainian/EU 11.5% wheat at around $265 a ton c&f for first-half May shipment.
In Poland, export prices rose following Euronext and amid limited farmer selling.
Polish 12.5% protein wheat has risen 20 zloty in the last week to around 850 zloty (198.5 euros) for March/April delivery to port silos. FOB premiums for 12.5% Polish wheat dropped to 1-2 euros over Euronext May from 3.5 euros earlier in March.
Despite reports of recent Polish export sales to the U.S., tough competition was hindering new business, a Polish trader said.
"It is difficult to find serious buyers outside of the EU for big shipments of Polish wheat due to low Black Sea prices, and Baltic States wheat is also cheap," the trader said.
($1 = 0.8658 euros)
