PARIS: Wheat futures on Euronext eased on Tuesday as traders adjusted positions ahead of widely followed US government crop forecasts while front-month rapeseed fell steeply to give up some of its large premium over new-crop prices.
March wheat on Paris-based Euronext was down 1.25 euros, or 0.5%, at 264.75 euros ($302.16) a tonne at 1653 GMT.
The contract had recovered from last Thursday’s four-month low of 259.00 euros before facing chart resistance on Monday.
A fall in soybean and corn futures, which have driven grain markets this month due to concerns over South American crop weather, weighed on wheat markets.
A lower than expected official estimate of Canadian wheat stocks, however, helped Chicago and Euronext wheat futures trim earlier losses.
Volumes were light on Euronext as traders looked ahead to Wednesday’s world supply and demand forecasts from the US Department of Agriculture (USDA).
Worries about lagging French and European Union exports were curbing Euronext prices, with competition continuing from Black Sea countries despite geopolitical tensions over Ukraine.
“This week there is a low level of wheat purchase tenders so far from the main importers in the Middle East and North Africa, with feed grains mainly in demand,” the trader said.
“I suspect the big importers still have a milling wheat requirement but are waiting for further drops in futures.”
Standard 12% protein wheat for February onwards delivery in Hamburg was offered for sale at about 13 euros over Euronext March with purchase ideas at around 11 euros over.
Significant rainfall in recent days in Germany and forecasts of widespread showers in France next week were also tempering concerns about a dry spell for grain crops in western Europe in the past month, traders said.
In rapeseed, May futures, the last 2021 harvest position on Euronext, was down 3.2% at 679.25 euros a tonne.
Talk of easing rapeseed supply tensions in Europe after a record physical delivery at the expiry of February futures, added to pressure from a pullback across the oilseed complex, traders said. ($1 = 0.8762 euros.
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