PARIS: European wheat futures edged lower on Friday in step with Chicago as a rebound from contract lows petered out in the face of abundant supply in exporting countries.
December wheat on Euronext’s Paris-based futures market settled 0.7 percent down at 189.50 euros (USD221.60) per metric ton. The most-active contract on Euronext had regained some ground since reaching a contract low of 187.75 euros on Tuesday. Chicago wheat also eased on Friday, pressured by weakness in corn.
Grain market participants were looking ahead to US government stocks estimates next week. Wheat prices had found support mid-week from chart lows and signs of an upturn in import demand, with Algeria notably estimated to have booked around 600,000-700,000 tons of wheat in a tender on Tuesday.
However, latest crop forecasts underscored plentiful supply in exporting countries. The European Commission on Thursday increased its forecast for European Union soft wheat production in 2025/26 to a 10-year high of 132.6 million metric tons, leading it to raise its projection of end-of-season stocks.
“We’re tracking the fall in Chicago,” a futures dealer said. “Fundamentally the market remains heavy.” Traders were also assessing the impact of a brief suspension this week of Argentina’s grain export taxes that generated a burst of sales of wheat alongside other crops.
In France, a vessel is loading 65,000 tons of wheat for Egypt this week at the west coast ports of Nantes and Montoir, according to traders and shipping data.
That is in addition to a vessel due to load around 60,000 tons of wheat for Egypt at the northern French port of Dunkirk in the coming days, according to LSEG data.
However, traders are concerned that export demand appears light so far for the following months. Showers and cool temperatures this week in France should help upcoming wheat planting, though the conditions may slow maize harvesting that is in its early stages, traders said.
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