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EU wheat market remained underpinned by healthy overall export demand

EU wheat market remained underpinned by healthy overall export demand

The European market remained underpinned by healthy overall export demand. The European Union reported on Thursday 571,000 tonnes of weekly soft wheat export licences, keeping the bloc on course to post record full-year exports in 2013/14.
European wheat futures turned sharply lower on Thursday, after hitting their highest in almost a year, as a rally fuelled by tensions in Ukraine was seen as overdone.
The pullback in Paris was encouraged by a similar correction in Chicago after a 4-1/2 month high and by strong resistance on price charts, dealers said.
May milling wheat on the Paris-based Euronext market was down 3.50 euros or 1.6 percent at 210.00 euros a tonne at 1640 GMT to breach chart support at 210.75 euros. In opening trade it had risen more than 1 percent to reach 216.00 euros, its highest since end-March 2013, before paring gains in the face of chart resistance around 214 euros.Chicago wheat also gave up more than 1 percent after earlier peaking at $6.96-1/2 a bushel, just shy of the $7 threshold.
“We’re seeing a technical correction in what is an overbought market,” one Euronext dealer said. The rally this month on U.S. and European wheat futures has been supported by supply risks created by a standoff between major grain exporters Ukraine and Russia, along with dry conditions affecting U.S. crops. But traders said the price rise, which saw Paris May wheat add 10 percent between the end of February and Thursday’s high, had been amplified by investment fund buying and did not reflect the immediate risk in the Black Sea region.
“Although much of the international price strength is linked to the political tension in Ukraine there seems to be no disruption to Ukraine’s grain exports even from Crimea,” one German trader said. “Some people are starting to ask if futures markets are reacting too sharply to the events in Ukraine.”
The European market remained underpinned by healthy overall export demand. The European Union reported on Thursday 571,000 tonnes of weekly soft wheat export licences, keeping the bloc on course to post record full-year exports in 2013/14.
In Germany, wheat premiums were little changed. Standard milling wheat for April delivery in Hamburg was offered for sale at an unchanged premium of 3 euros over the Paris May contract, but with offers of 2.5 euros over also heard. Buyers were seeking 1.5 euros over. Germany will harvest 24.64 million tonnes of wheat of all types in 2014, down 1.8 percent on the year, German Farm Cooperatives Association DRV said on Thursday in its first harvest estimate.

(Source – http://www.blackseagrain.net/novosti/eu-wheat-market-remained-underpinned-by-healthy-overall-export-demand)

EU wheat market remained underpinned by healthy overall export demand Reviewed by on . The European market remained underpinned by healthy overall export demand. The European Union reported on Thursday 571,000 tonnes of weekly soft wheat export li The European market remained underpinned by healthy overall export demand. The European Union reported on Thursday 571,000 tonnes of weekly soft wheat export li Rating: 0
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