European wheat prices fall following US markets

PARIS: European wheat prices fell on Monday following a plunge on US markets and a broader sell-off as soaring coronavirus cases in Europe and the United States clouded the global economic outlook.

Benchmark December milling wheat on Paris-based Euronext, was down 1.2% by 1645 GMT to 207.25 euros a tonne.

At the same time, the most active wheat contract on the Chicago Board of Trade was down 1.9% to $6.20-1/2 a bushel.

Calls by several Muslim countries, including Morocco, to boycott French products over images displayed in France of the Prophet Mohammad were not expected to have immediate impact on grain exports.

"This mainly affects branded products in retail distribution channels. Our commodities are being transformed, so the French origin is ultimately not very visible," one trader said.

"What matters most is the price," he said.

Algeria and Morocco are traditionally France's main grain export markets outside the European Union, although sales to the North African countries have fallen sharply this season, largely because of a sharp drop in the harvest this year.

EU crop monitor MARS on Monday cut its yield forecast for all summer crops and said wet weather had hampered fieldwork in the bloc in the past weeks.

In Germany, continued export optimism supported the market with a brisk programme of loadings in German ports expected to carry on into November.

"German wheat has a good chance in unusual export markets usually dominated by Russia and even France because of the high prices in these two countries," one German trader said. "Regular wheat shipments continue to Britain as the Brexit uncertainty continues."

Ships loaded with German wheat in the past week include vessels with 55,000 tonnes for Algeria, 30,000 tonnes for Morocco, 6,000 tonnes for Suriname in South America and two ships with together 8,000 tonnes for Britain, traders said.

Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale little changed at 2 euros under Paris December. Buyers were seeking 3 euros under.