HAMBURG: European wheat futures fell on Monday, pressured by improved crop weather in Europe and the United States which could benefit wheat crops on both sides of the Atlantic.
Benchmark September milling wheat on the Paris-based Euronext exchange unofficially closed down 4.5 euros, or 2.0%, at 213.50 euros ($259.49) a tonne.
“From a fundamental point of view, few changes can be observed,” French consultancy Agritel said in a note. “However, the improvement in weather conditions in the US and France is encouraging producers to hedge at these price levels and financial operators to take profits on long positions.”
On Friday, French agency FranceAgriMer kept its crop rating for French wheat unchanged at 79% in good/excellent state, ending four weeks of declining ratings in a sign that rain has helped cereals after a dry, cold April.
The main grain growing regions in France, the European Union’s largest producer of the cereal, are due to experience more rain this week, which should further benefit crops.
In Germany, repeated rain over the weekend and widespread wet weather forecast for much of this week was also welcome for wheat crops. “Wet weather for the new crop is positive and will help wheat catch up after the cold in April and in early May slowed growth,” one German trader said. “Wheat is perhaps a couple of weeks behind normal development but could catch up quickly in the coming weeks.”
“With normal weather patterns in June to August, Germany is on course for a decent harvest this summer.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale at around 3 euros under Paris December. Buyers were seeking 4 euros under Paris December.—Reuters
Comments
Comments are closed for this article.