HAMBURG/PARIS: European wheat dropped on Monday on concern about Turkey’s import ban weakening global demand, but an export-friendly dip in the euro restrained falls.
Benchmark September milling wheat on the Paris-based Euronext fell 1.0% to 241.25 euros ($259.08) a metric ton at 1524 GMT. Turkey will halt wheat imports from June 21 partly to protect farmers. The country is the world’s fifth largest wheat importer, buying mostly from Russia. Turkey’s decision also weakened Russian wheat prices. “Russia will have to sell wheat expected to go to Turkey in other markets,” a German trader said.
“This will mean more export competition for the EU.” European exports could benefit from a sharp drop in the euro after gains by the far right in European Parliament elections on Sunday prompted French President Emmanuel Macron to call a snap national election. “The unexpected dissolution (of the National Assembly) in France is causing turmoil in the markets,” a trader said. “Eventually, a low euro is good news for exporters.”
Showers could lessen dryness in the Black Sea, which has been punished by recent droughts, but may be too late to benefit crops, analysts said. Spain’s barley crop was underway which would reduce feed grain import demand, traders said. In Poland, a positive new crop picture was in focus.
“Polish processors managed to purchase substantial quantities of feed and milling grains during price weakness in the last two weeks, and are looking forward to a positive new crop,” one Polish trader said. “Poland’s weather is almost perfect, the whole country received enough rain during the last 10 days and with moderate temperatures, grains are growing very quickly.” Active wheat export shipments continued in Poland.
In Gdansk/Gdynia, two ships are loading 50,000 tons and 53,000 tons respectively for unknown destinations, while in Szczecin one is loading 35,000 tons for Morocco.
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