PARIS: European wheat futures turned lower in late trading on Thursday after a closely watched US government crop report surprised traders with a massive increase to projected world corn supply due to revised Chinese statistics.
The US Department of Agriculture (USDA) November supply and demand report nearly doubled its estimate of world corn supply to 307.51 million tonnes. It also gave a higher than expected forecast for global wheat stocks as it incorporated revisions to Chinese data for recent years.
However, some traders said the USDA report was neutral for wheat and corn excluding the figures for China, which has limited impact on world cereal trade.
The report was seen as more negative for prices of soybeans, with US stocks revised up due to flagging exports due to the trade dispute with China, which is the largest importer of the oilseed.
Benchmark December milling wheat on Paris-based Euronext settled 1.25 euros lower at 200.00 euros ($227.98) a tonne, after falling to a one-week low of 199.25 euros shortly before the close.
In Germany, cash premiums in Hamburg were flat prior to the release of the USDA data.
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December.
"People are not taking on new risk today and some will wait to see on Friday how the markets reacts to the USDA reports," one German trader said.
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