PARIS: Euronext wheat edged lower on Friday, curbed by weakness in Chicago futures as grain markets awaited impetus from world crop forecasts from the US government.
A further fall in the euro, which hit a three-low against the dollar, lent support to Paris prices, partly offsetting the drop in Chicago.
September milling wheat on Paris-based Euronext was 0.3% down by 1425 GMT at 385.25 euros ($405.01) tonne.
Market participants are looking to the US Department of Agriculture’s (USDA) world crop report at 1600 GMT for a gauge of US supplies and the ongoing impact of the war in Ukraine.
Wheat markets have fluctuated this month in reaction to diplomatic talks to re-open Ukraine’s Black Sea ports.
An agreement appeared uncertain as fighting between Russian and Ukrainian forces raged in eastern Ukraine while traders were doubtful about how a shipping corridor could function.
After a dip in international demand in recent weeks as importers balked at high prices fuelled by the war in Ukraine, traders were increasingly looking ahead to the 2022/23 season that starts in July.
In France, traders said there was talk of a fresh wave of demand from drought-hit Morocco, with cargoes expected to be shipped in the coming weeks.
The condition of France’s soft wheat crop deteriorated for a sixth consecutive week, data from farm office FranceAgriMer showed on Friday.
But a smaller decline in the latest week suggested rain and cooler temperatures may be curbing spring drought and averting further loss of yield potential for this summer’s harvest.
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