HAMBURG: European wheat futures fell nearly 1% on Monday, following a sell-off across some other commodities and financial markets.
Benchmark December milling wheat on the Paris-based Euronext exchange was down 0.9%, or 2.25 euros, at 245.50 euros ($288.0) a tonne at 1522 GMT extending a fall initiated last week.
“Markets are in the red today. The enthusiasm about economic growth that had fuelled the rise on financial markets is now weaker,” a trader said.
“Grains markets are taking a toll just as the others,” he said.
However, good demand at a time of low supplies limited the fall, traders said, pointing to a series of international tenders.
Pakistan on Monday received offers in a large tender to buy 500,000 tonnes of wheat. Wheat tenders this week include Jordan and Taiwan.
In Sweden, milling wheat markets remained firm with higher premiums in the last week export, while demand continued for Swedish supplies, including for Algeria.
Sweden is among countries including Germany and Poland benefiting from more demand from Algeria after quality problems with the new crop in France, Algeria’s traditional supplier.
Premiums for handysize vessel loads of Swedish wheat meeting the quality requirement of Algerian state gains purchasing agency OAIC rose to a range of 12 to 17 euros over the Euronext December contract depending on load port in the Baltic Sea region for October loading.
This was up from 5-6 euros in the previous week.
Sweden’s wheat harvest is generally finished and new crop sowing is in full swing.
“Favourable weather and high prices makes us believe that we will see historically high acreage numbers for both rapeseed and winter wheat this season,” one Swedish trader said. “Farmers are selling at a reasonable pace for this time of the year.”