Reuters
European wheat futures were marginally lower on Wednesday with the market underpinned partly by news that Morocco would keep its import taxes unchanged.
Weaker prices in Chicago, however, helped to keep the market on the defensive.
May milling wheat on Paris-based Euronext settled a marginal 0.25 euros or 0.1 percent lower at 151.25 euros.
Morocco’s agriculture minister told Reuters on Wednesday that it would retain its 30 percent customs duty on imported soft wheat until the end of the year to ensure adequate supplies for the domestic market.
This would allow France, a major wheat supplier of Morocco, to continue exporting at the start of the new campaign.
However, traders remained cautious pending the publication of an official document.
Morocco’s crop is expected to fall sharply after the most unfavourable weather in a decade. The drought had prompted millers and wheat importers in Morocco to ask the government to extend an import window and allow an earlier start to next season’s imports.
Dealers said an expected decline in Ukraine’s grain crop in the coming season also helped to support EU prices.
“EU wheat exports will benefit from potential cuts in 2016/17 Black Sea production, particularly across Ukraine,” Rabobank said in a market update.
May feed wheat in London ended unchanged at 104.75 pounds a tonne.
“The (physical) market seems to have a point at which demand can find ex farm supply generally,” UK merchant Gleadell said in a daily update.
“Spring crop plantings are well on their way with winter crops generally in rude health with some moisture spread disease concerns in the South and West (of England).”
(Reporting by Nigel Hunt in London and Valerie Parent in Paris; Editing by Ruth Pitchford)
