PARIS: Euronext wheat futures fell on Friday to new contract lows after a US government crop report showed there were large global supplies, including big harvests in the Black Sea exporting region.
December milling wheat, the most active contract on the Paris-based Euronext exchange, settled 1.75 euros, or 1.1 percent, lower at 165.50 euros ($195.60) a tonne.
It had earlier dropped to 165.00 euros, the latest in a series of contract lows set this week.
Grain markets turned negative after the US Department of Agriculture's (USDA) August crop report on Thursday showed higher than expected US corn and soybean yields, a smaller than anticipated cut to US wheat production and larger than expected global grain stocks.
The report included a sharp increase in projected Russian wheat production to a record high, along with upward revisions to the Ukrainian and Kazakh wheat crops.
"The USDA report was a surprise with the US corn yield that looked high," one futures trader said. "But USDA is right about Black Sea wheat, Russia hasn't had any real problems with its crop."
"France will manage to export because it has the quality this year. But the Black Sea competition is there and Euronext looks too expensive," the traders said.
A rise in the euro on Friday also weighed on Euronext prices.
In Europe, traders were still awaiting a clearer picture of Germany's rain-hit harvest.
Widespread rain on Friday again disrupted wheat harvesting in north German export production regions, intensifying fears of more loss in wheat quality.
"Farmers are using every break in the weather to harvest but I think only 30 percent of the wheat in the north and north eastern export regions has been gathered," a German trader said.
"Problems in (the quality criteria) falling numbers and specific weights are increasingly visible which will reduce export supplies. More quality loss is likely unless the weather improves in the next two weeks."
Much more favourable weather, with sunshine and higher temperatures, is forecast in north Germany from Sunday to Tuesday.
Standard bread wheat with 12 percent protein content was offered for sale up 0.5 euro at a premium of 3.5 euros over the Paris December contract for September delivery in Hamburg.
In France, farmers had almost finished harvesting wheat by the start of this week, with 97 percent of the crop cut, farm office FranceAgriMer said.
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