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Markets Print edition: 2020-05-23

EU wheat prices fall

Published Updated

Euronext wheat futures were lower on Friday with forecast rains in parts of northern Europe this week set to bring some relief after a prolonged period of dry weather. September milling wheat on the Paris-based Euronext exchange was down 1.75 euros, or 0.9%, at 188.25 euros ($205.02) a tonne by 1527 GMT.

"A good volume of rain is forecast in Germany, Poland and southern Russia over the weekend and early next week which is an influence today, but I think markets will wait to see how much rain actually falls," one German trader said.

Dry conditions have dented crop outlooks across northern Europe, Russia and parts of the United States.

In Britain, production could fall below 10 million tonnes, down sharply from last summer's 16.2 million tonnes, with the threat to yields coming against the backdrop of a steep decline in planted area.

"There is little rain in the forecast and, with temperatures rising, there may not be any short-term relief," UK merchant Frontier Agriculture said in an update issued on Friday.

November feed wheat futures in London were down 1.0% at 168.75 pounds a tonne after rising on Thursday to a peak of 171 pounds, the highest level for the contract since April 23.

Germany has a mixed crop picture, with wheat in central and southern regions assessed as having received sufficient rain.

But the crop in Germany's northern and eastern grain belts, the main export regions, is looking dry and harvest forecasts have been cut.

Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale little changed at around 1.5 euros under the Paris December contract. Sellers were seeking about 2 euros under Paris.

Copyright Reuters, 2020

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