COMMODITIES(B-Trams):
HAMBURG:On the back of competitive Russian Wheat exports and expectations that a wartime shipping corridor from Ukraine will be extended, easing supply concerns, Euronext wheat fell to a new one-year low on Monday. May milling wheat was down for a fourth session in a row on the Paris-based Euronext exchange, officially closing down 1.4% at 271.25 euros ($289.80) per tonne.
It dropped to 268.50 euros earlier, the lowest level it has been at since February 2022 and below the one-year low it reached last week. A futures dealer stated, “The market continues to have a heavy feel for the time being, with selling pressure continuing.”
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According to a German trader, the Turkish foreign minister’s remarks about Turkey working to extend the Ukrainian shipping channel are seen as indications that new efforts are being made to maintain the shipping deal, which is set to end in mid-March.
The prospect of additional shipments from the European Union to the North African nation was raised by the news that Morocco had maintained, for the month of March, a subsidy rate that was lower for imports of Russian and Ukrainian wheat compared to other origins like French wheat.
Even though exports to other destinations have decreased as a result of Russian competition, Morocco has maintained a steady demand for EU. We continue to see extremely low sales offers for Russian wheat on international markets, and the market in the EU requires more demand.
The super late interest for EU wheats I have seen is Morocco which I gauge purchased around 250,000 tons of French and other north EU wheat somewhat recently or so for the most part for Spring shipment,” a German broker said.
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After a record dry spell in recent weeks, widespread showers anticipated for the week ahead were easing immediate crop concerns in France. Standard 12% protein wheat for Spring conveyance in Hamburg was made available for purchase at a higher cost than expected of around 7 euros over the Euronext Might contract with little buy interest seen.
