LONDON: Euronext wheat fell on Monday, tracking a sharp decline in Chicago futures as an improving outlook for the US winter wheat crop eased concerns about tight supplies.
September milling wheat on Euronext was down 5 euros, or 2.35%, at 207.75 euros ($253.73) a tonne by 1540 GMT after dipping to a one-month low of 206.75 euros. Grain futures in Chicago also fell.
Dealers noted the crop outlook was particularly favourable in winter wheat states such as Kansas although there remain concerns about dry weather in spring wheat areas.
“Favourable US weather eased some concerns ... though US spring wheat areas are yet to benefit from rainfall and some Canadian spring wheat areas remain dry despite recent rains,” Britain’s Agriculture and Horticulture Development Board said in a market update on Monday.
French wheat was offered at a tender issued by Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), although all the business went to Romania.
GASC said on Monday it bought 240,000 tonnes of Romanian wheat in an international purchasing tender for shipment Aug. 8-22.
Dealers were also keeping a close watch on potential increased competition from Russian wheat from June 2 when a formula-based export tax is introduced.
Russia currently has a fixed export tax which equates to about $60 a tonne while the formula-based system is expected to result in a lower tax of about $30.
UK feed wheat futures also fell with November down 3.25 pounds, or 1.85%, to 172 pounds a tonne.
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