Euronext wheat futures saw a significant increase on Friday, driven by technical buying and renewed hopes for wheat exports, particularly potential French sales to Egypt, traders reported. The September wheat contract settled up 0.8% at 209.75 euros ($238.53) per metric ton, recovering from a contract low of 206.25 euros the previous day. Earlier in the session, prices reached a one-week high of 212.00 euros.
The front-month May wheat futures ended slightly lower, down 0.1% at 209.25 euros. Despite this, they had also rallied from a contract low earlier in the week, peaking at a one-week high during the session. The euro’s further decline from a three-and-a-half-year high against the dollar on Monday helped improve the competitiveness of Western European wheat on global markets.
The recent dip in prices stirred speculation about potential demand for French wheat from major wheat importer Egypt, reminiscent of discussions from a month ago when Euronext wheat futures fell to a one-year low. Traders mentioned unconfirmed reports that at least one vessel of French wheat might be sold for shipment next month, although previous rumors of such deals have not always materialized into actual shipments.
Improving crop conditions in key northern hemisphere wheat-producing regions have, however, continued to limit the upward potential for prices. In Ukraine, better weather following an unseasonably cold start to April has led to increased offers of new-crop wheat. Traders noted that Ukrainian wheat sellers were becoming more willing to strike deals in euros due to the recent fluctuations in the dollar’s value.
“Cheap offers for Ukrainian new-crop feed wheat were seen this week,” a German trader remarked. “The lack of weather risks in Ukraine and the weakening dollar prompted sellers to engage more actively in agreements priced in euros.” Offers for Ukrainian 2025 crop feed wheat were reported at around 203-205 euros per ton for delivery to northern Germany, with quotes for delivery to the Netherlands even lower, around 198 euros per ton.
In France, the condition of soft wheat crops slightly declined last week, according to data from the national farm office FranceAgriMer. Despite this, traders remain optimistic, as recent rainfall in the region is expected to provide much-needed relief after a dry start to the spring season. FranceAgriMer reported that 74% of France’s soft wheat crops were in good or excellent condition as of April 21, down from 75% the week prior but still well above the 63% recorded at the same time last year, when heavy rainfall severely impacted crops.
Despite concerns over the lack of rain in northern France, recent showers are expected to improve crop conditions. Similarly, the condition of winter barley slipped slightly, with 70% of crops rated as good or excellent, compared to 72% the previous week. Durum wheat and spring barley conditions remained steady at 76% and 84%, respectively.
Meanwhile, maize planting in France has progressed faster than usual due to the dry spring weather. By April 21, FranceAgriMer estimated that 50% of the French maize crop had been sown, up from 39% the previous week and ahead of the five-year average of 42%. However, traders are keeping a close eye on the potential impact of heavy rain in southwest France, a key maize-growing region, which could slow planting activities in the coming weeks.
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