PARIS: Euronext wheat edged lower on Wednesday as cereal markets consolidated after a recent rally and traders assessed US government crop forecasts.
September milling wheat on Euronext settled down 1.25 euros, or 0.6%, at 225.50 euros ($272.16) a tonne.
Euronext wheat, which had rallied last week in the wake of an eight-year high for US corn, had already traded slightly lower before the US Department of Agriculture’s (USDA) world crop report was released near the European close.
The USDA’s first global outlook for 2021/22 projected US corn and soyabean supplies would recover only moderately from low levels this season, while global wheat stocks would remain ample.
Chicago corn and wheat futures fell, although some traders saw scope for further rallies given drought in Brazilian corn-growing belts and rising Chinese imports.
The return of rain in France has eased stress for crops that endured dryness and frosts last month, farm office FranceAgriMer said.
The office trimmed its forecast for end of season soft wheat stocks to a seven-year low. Chinese demand has helped absorb French wheat and barley this season and large forward sales are set to maintain a similar trend for the start of next season.
In Germany, traders said expectations of a French focus on China and uncertainty over Russian export taxes were supporting demand for German new crop.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 4 euros under Paris December. Buyers were seeking 5 euros under.
In rapeseed, Euronext August futures climbed to a new life-of-contract high at 559.00 euros a tonne, before settling up 2.2% at 555.25 euros.