Wheat prices were slightly lower on Friday, weighed partly by rains in some parched regions of western Europe while corn futures remained little changed. Showers were reported in the European Union's top two producers, France and Germany, although it was unclear if sufficient rain would fall to aid crop recovery.
"Some rain has been falling in north Germany and Denmark today which could help to relieve the crop picture," one German trader said. "This prompted profit taking in the market. "But it is still unclear whether the rain was enough so the market remains fundamentally well-supported," the trader added.
Prices in Europe were also weakened by a slight rise in the value of the euro against a broadly weaker dollar. CBOT July wheat was off 1-1/2 cents or 0.2 percent at $8.13 a bushel at 1121 GMT while November wheat in Paris fell 1.25 euros or 0.5 percent to 251.50 euros a tonne.
"Weather in the short to medium term will rule...the market will remain volatile and open to bouts of profit-taking when any bearish news appears," said David Sheppard, managing director of UK merchant Gleadell. Dealers also continued to keep a close watch on the outlook in the Black Sea region with crop prospects generally favourable and Russia expected to end its ban on exports on July 1.
"As soon as it is clear that the export ban in Russia is not to be extended but will expire as planned on July 1st, prices should pare their recent gains," Commerzbank said in a market note on Friday. Corn prices were holding steady with CBOT July unchanged at $7.45-1/2 a bushel, underpinned by adverse weather in the US The US Midwest and Plains have been hit with severe storms, bringing heavy rains, high winds and deadly tornadoes to America's heartland over the past four days.
Comments
Comments are closed for this article.