PARIS: Euronext wheat fell 3% on Tuesday, pressured by a US government crop report that increased projected supply and by planned diplomatic talks over Ukraine’s war-disrupted grain exports, traders said.
September wheat on Paris-based Euronext settled 3.0% lower at 341.75 euros ($343.94) a tonne, retreating further from Monday’s almost three-week peak of 371.25 euros.
Chicago wheat also fell for a second day, curbed by a 20-year high for the dollar and the US Department of Agriculture’s (USDA) monthly forecasts that revised up expected US wheat production and stocks.
News that discussions will be held on Wednesday between Ukraine, Russia, Turkey and the United Nations over Ukraine’s grain exports weighed on the market by reviving talk of progress towards establishing a sea corridor for grain shipments.
The closure of Ukraine’s sea ports, along with a slide in the euro to near parity against the dollar, has boosted early season export demand for European Union wheat.
First official EU export figures for the start of the 2022/23 season were delayed by a website issue.
In France, the farm ministry forecast the ongoing soft wheat harvest would produce 32.9 million tonnes, down 7% from last year and broadly in line with market expectations after drought clipped yields and farmers reduced the wheat area.
German traders were assessing early results of the wheat harvest, starting in isolated areas of the south and east.
“The first wheat cuttings in eastern regions like Saxony-Anhalt, Thueringen and Brandenburg are good,” one German trader said, adding that there were expectations the country’s crop might have avoided heat stress seen in France.
“I think Germany could achieve a wheat harvest of 22 to 22.5 million tonnes, still up about 5% on the year despite the heat and dryness.” A widespread start to Germany’s wheat harvest is still about 10 days away, traders said.
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