PARIS: Euronext wheat edged lower on Monday, consolidating after earlier contract highs fuelled by dry weather in France that has added to worries about tightening global supply.
September milling wheat on Paris-based Euronext was down 0.8% at 394.25 euros ($415.26) a tonne by 1514 GMT in moderate volumes.
It earlier rose to 405.00 euros, surpassing a previous contract high of 402.00 euros from Friday, but again faced selling pressure above 400 euros. An easing in Chicago prices encouraged Euronext to consolidate.
Traders were also waiting for Tuesday’s expiry of front-month May futures on Euronext. The contract was down 1.6% at 399.75 euros, after earlier rising to 414.75 euros.
The market was further watching for an update on US wheat crop conditions, which have been at their lowest since 1996, in a weekly US Department of Agriculture (USDA) report later on Monday.
Grain markets were also turning their attention to the USDA’s monthly world crop report on Thursday that will include the agency’s first supply and demand outlook for 2022/23.
Wheat markets rallied in recent days as dry weather concerns in US and French growing belts coincided with falling harvest estimates in India, exacerbating a potential shortfall in world supply as Russia’s invasion stalls Ukrainian shipments.
An agricultural expert from technical institute Arvalis said on Thursday that a hot and dry spell forecast for the coming days in France would cause irreversible damage to grain crops.
Traders are also becoming concerned about dry weather in other major European crop-producing countries like Germany.