PARIS: Euronext wheat futures fell to fresh contract lows on Thursday as higher-than-expected US government estimates for corn and wheat sowings added to pressure from expectations of a large, mixed-quality wheat harvest in Europe.
Front month September milling wheat on the Paris-based Euronext exchange settled down 1 euro, or 0.6 percent, at 155.75 euros a tonne, leaving the contract down nearly 4 percent over the second quarter.
Shortly before the close it touched a contract low of 155.25 euros after the US Department of Agriculture's (USDA) acreage estimates, which were released near the end of the European session.
The USDA confounded market expectations by raising US corn acreage and it also lifted the US all-wheat area by more than expected. It increased soybean plantings by less than expected.
"It's very surprising to see corn acres increased. There is some extra wheat acreage too but the market focus is on corn versus soybeans," one futures dealer said.
"On Euronext, we're still in a downward trend with bearish fundamentals."
Wheat markets are facing seasonal supply pressure as harvesting gets underway in the United States and parts of Europe.
Worries that heavy spring rain will damage the quality of the French harvest was adding pressure as it could leave more of the crop than usual as cheaper livestock feed grain.
However, latest chatter about the advancing barley harvest in France pointed to some disappointing yields, which could suggest the upcoming wheat crop may be smaller than thought, traders said.
In exports, weekly European Union data showed the bloc awarded 490,000 tonnes of soft wheat export licences in the week to June 28, taking the total in 2015/16 to 31.1 million tonnes.
This was almost level with last season's volume with one award to come next week to cover the last two days of the July 1-June 30 marketing year.
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