PARIS: European wheat futures fell on Wednesday as US prices eased after a weather-fuelled rally earlier in the week while rain in France provided some relief to parched crops.
December milling wheat on the Paris-based Euronext exchange settled 1.50 euros, or 0.9 percent, lower at 173.25 euros a tonne, falling back from a near two-month high of 176.75 euros touched early in on Tuesday.
US futures edged lower as the market continued to ease after surging more than 5 percent on Monday when investors reacted to the risk of crop damage from snow and rainstorms.
France, where crops have endured extremely dry conditions, also had some more showers on Wednesday, with rain forecast to reach some particularly parched zones in the northeast.
"Without support from the US market, where it's not yet clear how much weather damage there has been, and with some beneficial rain in France in the north and east, it was logical for Euronext to consolidate," a futures dealer said.
Traders were waiting for further results of a crop tour in Kansas, the top wheat producing US state which was hit by severe weather last weekend.
The European Commission trimmed its monthly forecast for this year's common wheat crop in the European Union to 141.9 million tonnes from 142.2 million. Estimates for EU common wheat exports were unchanged for 2016/17 and 2017/18.
In Germany, cash market selling premiums in Hamburg rose as the market adjusted to movements in Paris, with feed wheat demand supporting prices.
Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale at 6 euros over the Paris May contract compared with 4.5 euros over on Tuesday. Buyers were seeking 5 euros over.
In Poland, domestic prices were firmer over the past week, while export prices dipped.
"Small farmers are often sold out as are small traders," one Polish trader said. "Some stocks are still in the possession of big farms, but they will wait with sales, hoping for higher prices."
Domestic prices for 12.5 percent protein wheat rose 5-10 zloty a tonne in the last week to 700-730 zloty (167-174 euros) a tonne for May delivery to mills.
Exporters were offering to pay up to 710 zloty a tonne for 12.5 percent protein wheat for May delivery to ports, 5 zloty less than last week.
The lineup of ships loading wheat at Polish ports was thinner after large shipments in recent months, with one vessel loading 18,000 tonnes for an undisclosed destination and another ship loading 7,000 tonnes for Spain.
Some Polish wheat listed for shipment to Turkey was sent to Greece instead after Poland was removed from Turkey's list of origins qualifying for duty free import status, traders said.
Comments
Comments are closed for this article.