Tuesday, 10 July 2012 23:02
PARIS: European wheat prices eased on Tuesday in step with US futures, which paused for breath after hitting highs a day earlier on drought conditions in the US Midwest.
Wheat pared earlier losses, however, as weather concerns continued.
Benchmark November milling wheat on the Paris futures market shed 2.00 euros or 0.80 percent to 246.75 euros ($300) a tonne after setting a new contract high at 250.25 euros in the previous session.
US wheat tracked a drop in corn, which eased after a 5 percent surge on Monday.
The US Department of Agriculture's (USDA) weekly crop ratings, released late on Monday, confirmed a sharp deterioration in the state of corn and soy crops, keeping ratings at their lowest level since 1988.
The fresh slide was seen as anticipated, although the deteriorating crop prospects put a firm floor under prices.
"We're pricing the fact that Chicago is cooling off and that the crop ratings were already factored ...