Euronext wheat futures extended losses on Tuesday to touch their lowest in almost seven weeks, pressured by a rise in the euro and weakness in Chicago as rain relief was forecast for dry US wheat belts. Front-month May milling wheat, the most active on the Paris-based Euronext exchange, was down 0.75 euro or 0.4 percent at 170.50 euros a tonne by 1637 GMT.
It earlier reached its lowest level since February 2 at 169.25 euros, after falling below chart support at 171.25 euros, before regaining some ground in line with Chicago. New-crop prices also extended losses to trade near contract lows. September fell as low as 168.00 euros, just above a contract low of 167.50 euros.
"It was the product of the euro, the rains in the US Plains and going through a few key support levels," a futures dealer said of Tuesday's price fall. The euro went above $1.08 for the first time since early February, as a French election debate reinforced expectations that centrist Emmanuel Macron would beat anti-euro, far-right rival Marine Le Pen in the upcoming presidential vote.
Chicago wheat futures fell to their lowest since early February, as forecast calling for rainfall in the US Plains in the next two weeks eased concern about what has been one of the few risks to global production. However, a falling dollar helped Chicago prices trim their losses during US trading. Mostly favourable crop conditions in Europe have also curbed Euronext prices, and beneficial rainfall was expected this week in France. German cash market premiums in Hamburg were little changed, with business lacking impulse as the euro's stronger trend dampened export hopes. "The currency is now moving pretty strongly against us and this will be a blow to hopes of new export business in the coming weeks," one German trader said. "It also looks like less wheat than hoped in the last Saudi Arabian tender will be sourced from Germany as exporters are in no hurry to buy."
Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at an unchanged premium of 3 euros over the Paris May contract. Buyers were seeking 2.5 euros over.
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