PARIS, Jan 10 (Reuters) – Euronext wheat edged lower on Friday, consolidating below an earlier seven-month high, as traders awaited key U.S. government crop estimates and monitored French labour strikes that were disrupting export logistics.
Benchmark March milling wheat on Paris-based Euronext was down 1.00 euro, or 0.5%, at 190.75 euros ($212.04) a tonne at 1624 GMT.
It earlier rose to 192.25 euros, slightly above a previous seven-month top of 192.00 euros struck on Thursday.
Chicago wheat was little changed after rising to its highest since August 2018 earlier on Friday.
The U.S. Department of Agriculture (USDA) will release world supply and demand forecasts later on Friday, along with estimates of quarterly U.S. grain stocks and U.S. winter wheat sowing.
Wheat markets have been supported by brisk international demand, with sentiment boosted by hopes that a U.S.-Chinese trade agreement will increase imports of wheat by Beijing.
In France, strong export demand was coinciding with transport snags caused by rail and port strikes over the government’s planned pension reform.
Disruption to rail services was pushing up physical premiums in Rouen and La Pallice as traders sought backup supplies to fulfil export contracts.
Soufflet, one of France’s biggest grain exporters, said on Friday that there could be a shortage of supplies at ports later this month if the strikes continue.
“There’s a lot of tension on the market in port zones,” a French broker said. “People are searching everywhere to get hold of supplies.”
In Germany, cash premiums in Hamburg were flat ahead of the USDA data.
Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 4.0 euros over the Paris March contract. Buyers were offering up to 3 euros over Paris.
“The January USDA report has in the past regularly caused fireworks with price turbulence, so I think the market is in a risk-avoidance mood today,” one German trader said.
Hamburg premiums continued to be supported by the brisk programme of ships loading wheat for export in German ports.
“Expectations are that export loadings in German ports will stay busy in the rest of January and into February, with sales to Africa likely to stay strong,” the trader said.
$1 = 0.8996 euros
Reporting by Gus Trompiz in Paris and Michael Hogan in
Hamburg; Editing by Pravin Char
