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EU wheat slips as Chicago slide outweighs bright exports

PARIS - European wheat futures fell on Thursday as a dollar-driven pullback in Chicago and wider commodity markets outweighed a positive export picture.

PARIS - European wheat futures fell on Thursday as a dollar-driven pullback in Chicago and wider commodity markets outweighed a positive export picture.

September milling wheat on Paris-based Euronext settled 2.50 euros, or 1.5 percent, lower at 161.50 euros a metric ton, pulling further away from a two-week high of 165.00 euros touched on Tuesday.

Volumes were light, with some market participants heading off to attend an industry event in the southern port of Sete on Friday, traders said.

Chicago wheat dropped sharply as a continuing rally in the dollar, linked to growing expectations of a U.S. interest rate rise next month, weighed on dollar-denominated commodities.

A corresponding fall in the euro, however, kept western European prices competitive and could sustain a recent run of strong export sales.

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The European Union reported 928,000 metric tons of weekly export licences for soft wheat, one of the largest volumes so far this season that brought the total so far in 2015/16 closer to last season's record pace.

Brisk exports plus slow farmer selling kept German cash market premiums in Hamburg stable.

Standard wheat with 12 percent protein content for May delivery was offered for sale unchanged at 8 euros under the Paris December contract. Buyers were seeking 9 euros under Paris.

"The high tonnage volume of EU export licences awarded today again illustrates the good export performance of EU wheat in past weeks and I think Germany has a share in this," one German trader said.

Related Topics: WHEATCROPS
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