EU wheat hits one-month high in volatile session

European wheat hit a nearly one-month high on Thursday before paring some of its gains as traders and funds were booking profits after a gain of about 7% in two weeks.

Benchmark May milling wheat (BL2K4) on Paris-based Euronext unofficially closed 0.4% higher at 199.75 euros a metric ton. It rose to 201.25 euros in earlier trade, a price not seen since Feb. 23, then fell as low as 197.50 euros before rebounding.

"There are certainly some adjustments after the recent rebound that was seen as maybe slightly excessive. There is quite a lot of wheat out there," one trader said, stressing that there was little demand for French wheat at the moment.

Another forecast of a big Russian crop this summer also depressed sentiment, traders said.

“The large export flows from the Black Sea are in market attention, with most export demand being met by the Black Sea,” one German trader said. “It is difficult to see where much EU wheat can be sold apart from to Morocco.”

“Russian wheat exports continue to at around 1 million tons a week so far in March. Volumes from Ukraine’s sea shipping channel continue to expand, with Russians again not attacking Ukrainian ports this week following the weekend strikes.”

Ships are now being offered for both night and daytime sailings from Ukrainian ports following recent concentrations on daytime sailings, underlining large volumes of Ukrainian grains available internationally, traders said.

Egypt bought 110,000 tons of Bulgarian and Romanian wheat in a tender on Wednesday.

Louis Dreyfus Company (LDC) said on Thursday its profits last year held close to the bumper levels of 2022, with the agricultural commodity giant saying its global trading network helped it withstand falling prices.

The group's chief executive told Reuters he remained positive about Chinese demand as a source of growth for agricultural markets, despite rebalancing in other parts of China's economy.

China's grain and oilseed imports are expected to remain near record highs this year despite a recent spate of cancellations as lower global prices and a domestic output shortfall prompt purchases.