MILAN – European wheat prices were flat on Friday as traders awaited the results of Egypt's tender in the afternoon, although with little hope that wheat of European origin would win a share as prices were not competitive compared to Black Sea wheat.
Volumes were very thin as many French operators were taking an additional day off between a national holiday on
Thursday and the weekend, traders said.
By 11:45 GMT, benchmark November on Euronext milling wheat futures was 0.25 percent higher at 198.25 euros a tonne.
"There are not many people around and the ones who are working are waiting for Egypt to see which will be the discount for Russian wheat (compared to other bids)," a trader said.
Egypt is holding a tender to buy an unspecified amount of wheat from global suppliers for a 11-20 August shipment. Results were expected at around 16:30 local time (14:30 GMT).
In its last international wheat purchase on 7 July, the General Authority for Supply Commodities (GASC) bought 180,000 tonnes of Russian wheat for its 1-10 August shipment, its first purchase from that origin since Moscow's return to the world export market on 1 July.
"There is no chance French wheat can take a share of the cake. We are just not competitive," another trader said.
Feed wheat futures in London were slightly lower, weighed partly by a rise in the value of sterling to a one-month high against the euro which diminished the competitiveness of UK exports to key customers in the eurozone.
November feed wheat was off 0.15 pounds at 166.00 pounds a tonne at 11:28 GMT.
Dealers also noted improved harvest prospects in western Europe.
"Wheat prospects in the EU have improved over the past weeks with production forecasts for the major producers now showing signs of increasing," UK merchant Gleadell said in a market note on Friday.
"With apparent cheap offers of Russian wheat, this extra EU tonnage should keep markets in check during the short-term as harvest progresses in the northern hemisphere regions," the report added.
In Germany, bread and feed wheat prices were firm, with bread quality wheat for September delivery in Hamburg offered 3 euros higher at 202 euros a tonne.
However, traders expected a strong competition from the new crop in Russia where a good harvest is foreseen.
"At the moment, the new crop Russian bread wheat with minimum 11 percent protein is very competitive on the export market," one trader said.
In Italy, a major grain buyer in Europe, soft wheat prices were unchanged on the week, in line with prices set at a key weekly session at Bologna's cereals exchange on Thursday.
Bread quality wheat for prompt delivery in northern regions was flat at 225-230 euros a tonne, traders said.
