PARIS: Euronext wheat rose on Wednesday, recovering from a three-month low in the previous session as traders weighed contrasting conditions in major northern hemisphere crop belts. A weaker euro, which touched a three-month low against the dollar, and strong chart support around 200 euros underpinned the market, traders said.
December milling wheat on Paris-based Euronext settled up 1.75 euros, or 0.9%, at 201.75 euros ($238.02) a tonne.
The contract fell on Tuesday to its lowest since early April at 198.50 euros before settling at the psychological 200 euro level.
After forecasts for beneficial rain in the US Midwest fuelled a sell-off in Chicago grain futures on Tuesday, the market on Wednesday set improving prospects for US corn against worsening conditions for spring wheat and soybeans in northerly US zones.
In Europe, the prospect of large harvests in the Black Sea region, including top wheat exporter Russia, has curbed prices.
In the European Union, rain in recent weeks has been mostly beneficial for crops, but was causing some concern about quality deterioration in France as wheat harvesting looms.
There was talk of good yields but mixed quality in initial winter barley harvesting, although frequent rain interruptions to field work were making it hard to get a clear picture, traders said.
In Germany, where summer harvesting takes place slightly later than in France, a latest production forecast reinforced expectations that recent rain has helped wheat crops.
Germany will harvest about 22.82 million tonnes of winter wheat in 2021, up 5% on the year, German farming association DBV said in its first crop forecast.
“I think the report shows that Germany is on course for a good wheat crop this summer and so good export supplies which are needed in a period in which Russia’s export taxes should transfer more demand to the EU,” one German trader said.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 1.5 euros under Paris December. Buyers were seeking around 3 euros under Paris.
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