European wheat fell to a one-month low on Wednesday after a four-day Christmas break, pressured by the rise of the euro hampering European wheat's competitiveness on world markets and shrugging off a rise on US markets. Egypt bought 180,000 tonnes of Russian wheat earlier in the day. Offers placed at the tender showed that all were for Russian wheat, except for one cargo of Romanian wheat.
"French wheat is clearly out of the game and the strong euro will not help," a trader said. "We cannot afford to follow Chicago." March milling wheat on Paris-based Euronext, was down 0.5 percent by 1658 GMT to 159.75 euros a tonne, after hitting 159.25 euros earlier, a price unseen since November 28. By the same time, most traded wheat on the Chicago Board of Trade (CBOT) was up 1 percent at $4.26-1/2 per bushel. US wheat prices were supported by the weak dollar and by US weather concerns.
Bitterly cold US temperatures could damage dormant winter wheat plants although the impact on the crop will not be known for months. The euro is on track to post its best year against the greenback since 2003. The single currency reached a 3-1/2 week high on Wednesday at $1.1904, Reuters data showed.
Comments
Comments are closed for this article.