Source: Ukragroconsult (Ukraine)
European wheat fell in “light” futures on Monday as U.S. markets were closed due to Presidents’ Day celebrations, while wheat from Western Europe is also expected to suffer losses due to large-scale buying by Saudi Arabia.
The most-traded BL2K5 wheat futures for May on the Euronext Paris exchange closed down 0.8 percent to 237.75 euros ($249.23) a tonne.
“It’s a bit of a dull day,” a French trader said. “Chicago rallied strongly on Friday and could open lower tomorrow, especially with so much uncertainty about what Trump is going to do on all fronts, whether it’s tariffs or ending the conflict.”
Cold weather in northern France has also raised concerns in some grain-producing regions.
“We will have to wait a few days, maybe a few weeks, to get a fuller picture of the damage,” a trader said.
Traders said the mood was subdued as Saudi Arabia’s large purchase of 920,000 tons of wheat in Monday’s tender was not expected to come from the western EU. Saudi Arabia’s tender was expected to be supplied mainly by exporters from Black Sea countries including Romania, Bulgaria and possibly some from Russia, Australia and Argentina.
“Wheat from western EU countries is priced about $15 a tonne higher, which is too expensive to compete with large-scale exports such as Saudi Arabia, which bought almost a million tons in one tender,” said one German trader. “Russian export prices are rising, but only relatively moderately.”
“Large volumes are still available for sale from the Black Sea, but there are concerns that the Black Sea will continue to provide large sales until the old crop export window closes when the new crop arrives this summer.”
Another German trader added: “Wheat from western EU countries needs export sales, but importing countries are not willing to pay the high prices we are asking.”