PARIS: Euronext wheat extended losses on Tuesday to a three-month low as supply pressure from improving crop prospects in the northern hemisphere spilled over into a post-holiday rout in Chicago.
September milling wheat on Paris-based Euronext settled down 2.25 euros, or 1.1%, at 198.25 euros ($234.21) a tonne, after earlier hitting a three-month low at 196.25 euros.
The more active December contract also struck a three-month low at 198.50 euros before settling at the psychological 200.00 euro level.
Forecasts of rainfall in US crop belts, including parched northern and western zones, had fuelled selling on Euronext on Monday during a US holiday market closure.
Chicago grain futures then tumbled as US markets reopened on Tuesday, with corn falling by its daily limit.
Moisture and moderate heat forecast for US corn ahead of the crucial pollination period were easing supply concerns stoked by a lower than expected government acreage estimate last week.
“The question is do we need another 2 million acres to balance supply or can we make do with what we have,” a futures dealer said.
In Europe, the prospect of large harvests in the Black Sea region, including top wheat exporter Russia, also curbed prices.
In the European Union, rain in recent weeks has been mostly beneficial for crops, but was causing some concern in France about quality deterioration as harvesting looms.
In Germany, repeated rain since last week was seen as positive.
“Rain is still positive for wheat in much of Germany, including in regions with light soils in the east, but in the next couple of weeks we will need a change to sustained dry, hot weather for ripening,” one German trader said.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed around 1.5 euros under Paris December. Buyers were seeking 2.5 euros under Paris.
In rapeseed, Euronext August futures settled down 16 euros, or 3.1%, at 506.25 euros a tonne, pressured by rain forecasts for US soyabeans and Canadian canola, although it held above the 500 euro threshold—.
Comments
Comments are closed.