Euronext wheat futures edged up on Tuesday to recoup some of their day-earlier losses that were triggered by higher-than-anticipated U.S. government grain supply estimates.

An easing in the euro against the dollar, which makes western European grain cheaper overseas, helped underpin Euronext prices, which remain near contract lows.

March milling wheat (BL2H6), the most active position on Euronext’s Paris-based futures, was up 0.8% at 190.75 euros ($222.13) a metric ton as of 1545 GMT.

The benchmark contract closed 1.3% lower on Monday after U.S. Department of Agriculture crop data surprised traders with larger than expected estimates of U.S. corn supply, as well as a higher than anticipated estimate of U.S. winter wheat acreage.

The wheat market is already grappling with abundant supply in major exporting countries, which has tempered concerns about winter weather and intense Russian attacks on Ukrainian Black Sea ports.

“The wheat market continues to face large supplies available in exporting countries as was underlined by the USDA on Monday,” one German trader said.

“The west EU is also facing continued tough price competition. Price falls in Chicago corn could also be damaging for feed wheat demand.”

Russian wheat prices have started the new year weaker, with Russian 12.5% protein content about $225 a metric ton FOB at the start of this week, down $1 from December 27 before the New Year and Orthodox Christmas holidays, said the head of the IKAR consultancy.

Argentine 11.5% protein wheat for February shipment was on Tuesday again seen as the world’s cheapest mainstream origin at around $219-222 a ton FOB, about $10 a ton cheaper than French, the trader said.

Rapeseed on Euronext rose in step with Canadian futures (RSc2) as a Bloomberg report that China could offer tariff relief for Canadian supplies reinforced speculation that a visit by Canadian Prime Minister Mark Carney to China this week could ease trade tensions.

February rapeseed (COMG6) was up 1.4% at 474.75 euros a ton, after reaching its highest since December 16 at 475 euros.
Source: Reuters