Euronext wheat falls in line with Chicago futures

PARIS Reuters -- Euronext wheat prices fell on Wednesday in line with Chicago futures as progress in resuming maritime grain exports from war-torn Ukraine offset support from brisk international demand, traders said.

December milling wheat settled at 323.00 euro $327.91 a tonne, down 1.1% on Paris-based Euronext.

The contract had risen to 330.75 euros earlier in the day before turning lower to approach Tuesday's one-week low of 321.25 euros.

The first grain vessel to leave a Ukrainian sea port since the beginning of Russia's invasion was inspected in Turkey on Wednesday before its journey to Lebanon, raising hopes for a safe-passage deal between Turkey and the United Nations.

A senior Turkish official said three ships could leave Ukrainian ports daily after the first sailing, while Ukraine's infrastructure minister said 17 more ships had been loaded with agricultural produce and were waiting to set sail.

The scope of large-scale Ukrainian sea trade remained a concern for traders, while Russia's invasion continued and pending the creation of insurance cover for such shipments.

The Euronext had earlier extended a rebound from Tuesday's low, as a purchase estimated at over 700,000 tons by Algeria underscored strong export prospects for European Union wheat.

Export demand and slow farmer selling supported physical premiums in Germany.

Buyers of standard 12% protein wheat for September delivery in Hamburg were offering around 31 euros a tonne over the Euronext December contract, but with few sales offers seen in the market.

One German trader said that despite the start of Ukrainian sea shipments, European export demand looks likely to be met for the coming weeks. Recent sales to Pakistan reported by traders were expected to contribute to another busy loading programme this month, after an unusually brisk start to the season in July, according to GRA TEND In France.

Port data shows a vessel due to call in France to load barley for Iran, the third shipment since June in what traders say is a partial shift in barley exports away from China.