PARIS: Euronext wheat edged lower on Monday in step with Chicago as the cereal gave back some of last week’s gains, showing little reaction to a US government crop report which brought a greater surprise in soybeans.
A jump in the euro to a three-week high against the dollar also pressured Euronext by making European wheat more expensive internationally.
December milling wheat on Paris-based Euronext settled down 0.7% at 335.50 euros ($340.00) a tonne.
On Friday, it struck a six-week high at 339.25 euros, breaking clear of chart resistance at 330 euros, as Russian criticism of a diplomatic deal allowing maritime grain shipments from war-torn Ukraine revived concern about Black Sea supplies.
Traders were assessing on Monday more territorial gains by Kyiv against retreating Russian forces in northeastern Ukraine.
France, meanwhile, announced on Sunday it would sign a deal with Romania to bolster alternative routes for Ukrainian grain exports.
Grain markets were focused on the US Department of Agriculture’s (USDA) monthly world crop report, released shortly before the European close.
The agency’s wheat projections were broadly in line with expectations, with reaction centered in oilseed markets after a lower than anticipated forecast of the US soybean crop.
Euronext also saw technical adjustments on Monday on the final session for front-month September wheat, which expired at 330.25 euros, down 0.2% on the day.
ICE Futures Europe said that its British feed wheat futures will not trade next Monday due to the state funeral of Queen Elizabeth on that day.
Rapeseed futures on Euronext ended higher, with the rally in Chicago soybeans following the USDA data and strength in crude oil countering pressure from the euro. November rapeseed settled up 1.2% at 604.75 euros a tonne.