Euronext wheat futures fell on Friday to a three-week low, pressured by a rebound in the euro and investor concerns about trade tensions after the United States unveiled tariffs against China. Activity was limited due to the absence of many French market participants, who were attending a grain industry event at the Atlantic port of La Rochelle, as well as continued uncertainty about prospects for the quality of the French harvest following torrential rain.
Benchmark December milling wheat on Paris-based Euronext was down 2.50 euros, or 1.4 percent, at 181.50 euros a tonne by 1612 GMT, after touching its lowest since May 23 at 181.00 euros. The contract was on course to fall more than 2 percent over the week, having given up gains fuelled by a lower than expected estimate of Russia's wheat crop in a US Department of Agriculture (USDA) report on Tuesday.
"The impression is the funds came in with the USDA report and the 68.5 million tonne estimate for Russia's crop, prompting others to buy too, and then trade news with Trump led prices to go back the other way," one futures broker said.
In France, the share of soft wheat crops rated good or excellent fell to 76 percent in the week to June 11, from 79 percent a week earlier, farm office FranceAgriMer said, in a sign of the impact of heavy rain.
In Germany, cash market premiums in Hamburg were little changed, with the focus still on dry weather in the north and east.
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