PARIS/HAMBURG: European wheat futures fell for a second session on Friday, moving further from a one-month high as a backdrop of ample supplies and tepid export demand hung over the market.
Benchmark September milling wheat on Paris-based Euronext was down 1.1% at 207.00 euros a metric ton by 1528 GMT. On Wednesday, it had climbed to 213.00 euros, its highest since April 17, as it rebounded from a contract low of 201.00 euros last week.
Chicago wheat also eased further from a one-month peak, with traders adjusting positions before the U.S. Memorial Day holiday on Monday.
Wheat rallied early this week as concerns over adverse weather in Russia and China and an unexpected decline in U.S. wheat ratings triggered short-covering by speculators.
But traders played down the risk of significant damage to crops. The International Grains Council on Thursday maintained its 2025-26 wheat crop outlook at 806 million metric tons, while consultancy Sovecon this week raised its 2025 Russian wheat production forecast to 81 million metric tons from 79.8 million tons.
In France, crop ratings for soft wheat fell last week, data from farm office FranceAgriMer showed on Friday.
Wheat dips again as short-covering rally loses steam
But concern over dry conditions in Northern Europe has eased as rain has returned to northerly areas in France and Germany, with more showers forecast in the coming days.
In exports, a Reuters report that top wheat exporter Russia has removed a minimum export price recommendation for May and June put attention back on competition from the Black Sea region.
The main concern, however, was limited prospects for new demand from importers.
“A problem in the wheat market is the demand side, which is dead,” one German trader said.
“The real test will come with an international tender, as Russian traders will have more freedom to offer lower prices to win demand, but there are currently no tenders in the market,” he said.
At the same time, a rise in the rouble to a two-year high against the U.S. dollar on Friday was underpinning Russian export prices, he added.
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