PARIS: Euronext wheat futures closed slightly lower on Friday, consolidating after a new six-week high as traders waited to see if harvest results would bear out recent reduced forecasts for crops in several exporting countries including France.
The market showed limited reaction to a closely watched world crop report from the US Department of Agriculture, released near the end of the European session, with the USDA trimming as expected forecasts for wheat supply.
September milling wheat on Euronext unofficially closed down 0.75 euros at 187.00 euros a tonne.
It earlier rose to 189.75 euros, its highest since late May and surpassing a previous six-week top struck on Thursday.
A surprisingly low first forecast of the French soft wheat harvest by France's farm ministry this week fueled a rally on Euronext, with reduced estimates for crops in Argentina, Russia and Ukraine also lending support.
The harvest uncertainty was making producers reluctant to sell in France, forcing merchants to raise physical premiums this week, traders said.
Farmers had harvested 10% of the French soft wheat crop by Monday, farming agency FranceAgriMer said on Friday.
In Poland, prices rose in the last week due to stronger international markets and a weaker Polish currency, with attention on the upcoming harvest.
"Optimism is increasing that we will get a very good crop here. But some farmers are saying there has been too much rain recently with uncertainty about protein level of wheat," a Polish trader said.
Export prices for Polish 12.5% protein were around 770 zloty (172.2 euros) a tonne for August-October 2020 to the port silo, up 10 zloty on the week.
Domestic prices were more restrained, the trader said.
"Some Polish buyers are expecting a big crop and are waiting for harvest pressure on prices with wheat harvesting expected to start in about two weeks if weather holds."
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