HAMBURG: Euronext wheat fell sharply on Monday as rainfall eased crop concerns in France amidst profit-taking after last week’s surge.
September milling wheat on Euronext unofficially closed down 8 euros, or 3.4%, at 224.00 euros ($272.6) a tonne. The contract climbed nearly 6% last week.
Weekend showers in France and rain forecast this week tempered worry about dryness in the European Union’s biggest grain producer. Rain was forecast in the United States, the Black Sea and Brazil’s parched corn belt.
“There’s no longer immediate stress for wheat crops,” a futures dealer said.
Traders were also monitoring the expiry of Euronext May wheat on Monday amid talk of a potentially record volume of physical deliveries. Storage certificates for more than 300,000 tonnes had been registered by Friday. Traders said limited availability and high cash market prices may have encouraged exporters and feed makers to take delivery via Euronext, although some certificates might be cancelled in a volatile market.
The May contract unofficially closed up 1.1% at 246.50 euros. On Friday it hit 270 euros, the highest front-month price since December 2012.
Weather in Sweden has been colder than normal during the spring but some recent rain benefited crops. Spring planting is approaching completion in southern Sweden and is about 75% completed in central Sweden.
“With a higher winter crop area than normal, cold and normal precipitation so far, the prospect for a good crop is given despite some pockets of winter kill in wheat in west and central Sweden,” one Swedish trader said.
The old crop is more or less sold out both from farmers and traders, and the focus now is on the new crop.
“Farmers have up to now sold about 15-20% of the new harvest and are waiting for higher prices before they continue selling on a bigger scale,” the trader added.
New crop 11% protein Swedish milling wheat for September delivery was little changed at around 5 euros a tonne under Euronext December FOB for Handysized vessel shipments.—Reuters
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