PARIS: European wheat edged lower on Monday, further consolidating after touching contract highs in the previous session, but strong export demand continued to support prices.
Benchmark December milling wheat on Paris-based Euronext was down 0.2% at 268.50 euros a tonne by 1541 GMT.
It rose to 272.00 euros on Friday, the latest in a series of life-of-contract highs for December futures and a six-week peak for a front-month price. Strong prices in Russia and uncertainty about the country's wheat shipments while it applies an export tax and considers a volume quota were also maintaining strength in European markets. "There is some selling interest (for Euronext wheat contracts) at these levels, but sentiment remains bullish with good international demand supporting prices," one trader said. European Union wheat exports have surged in the early part of the 2021/22 season as strong importer demand, a falling euro and high Russian prices boost EU shipments.
Latest EU data shows exports of common wheat, or soft wheat, running 45% above the at 8.1 million tonnes a year earlier, led by Romania, Bulgaria and Germany.
Sovecon, a leading Black Sea agricultural markets research firm, on Monday cut its 2021 estimates for Ukraine's corn crop and Russia's wheat crop.
In oilseeds, rapeseed futures that had rallied to contracts highs last week tumbled on Monday. Front-month November shed 2.6% to 650.00 euros a tonne, having touched 685.00 euros on Friday. "That was a rise of nearly 120 euros in less than a month. It had to stop at some point. Or maybe it's just taking a breather," one trader said.