PARIS: Euronext wheat tumbled on Friday to a four-month low as the onset of harvesting in major northern hemisphere production zones eclipsed supply tensions caused by the war in Ukraine.
Russia’s announcement of a revised export tax, expected to ease the burden of the levy ahead of a projected record crop, also pressured international prices, traders said.
Improving weather in the Midwest also encouraged selling in Chicago grains before a US holiday weekend.
September milling wheat on Paris-based Euronext settled down 4.5% at 334.50 euros ($348.05) a tonne.
The contract earlier fell to 331.25 euros, the weakest front-month price since March 1.
Chicago wheat, meanwhile, dropped to levels not seen since before Russia’s full invasion of Ukraine on Feb. 24.
“The northern hemisphere harvests are clearly weighing on the market,” a futures dealer said.
Winter wheat harvesting is well advanced in the United States and is under way in parts of Europe.
The European Union’s executive cut sharply its monthly forecast of the bloc’s soft wheat harvest, but traders said recent showers had tempered concern about drought damage.
French farmers had harvested 5% of the soft wheat crop by Monday, according to farm office FranceAgriMer. The French soft wheat harvest is expected to show a lower yield than average of 6.95 tonnes per hectare as hot, dry weather hurt crops in some areas, crop institute Arvalis and grain industry group Intercereales said.
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