PARIS: Euronext wheat inched down on Friday as a rebound from contract lows petered out in the face of rising global supply. A firmer euro also tempered export hopes stirred by renewed importer demand this week.
December milling wheat on Paris-based Euronext settled 0.1percent down at 187.75 euros (USD220.42) a metric ton, leaving it 0.9percent lower over the week. It had struck a contract low of 185.00 euros on Wednesday, close to a five-year low for a most-active position on Euronext.
Chicago wheat edged up to extend its bounce from contract lows this week that were also close to 2020 levels. “Futures found support near five-year lows,” consultancy CRM Agri said in a note. “Importers including Algeria, Jordan, South Korea and Morocco have returned to the market.” However, ample global supply remained a drag on cereals.
The United Nations’ Food and Agriculture Organization on Friday increased its forecast for 2025 global cereal output and now expects the biggest year-on-year rise since 2013.
Argentina’s wheat yields are nearing historic highs thanks to abundant soil moisture, the Buenos Aires grains exchange said on Thursday. In Russia, showers forecast in the next 10 days should ease dryness in the south of the country from more than half to a third of the wheat area, the Commodity Weather Group said.
Adverse sowing conditions and firm export prices in Russia, the world’s biggest wheat supplier, had helped underpin the international market in recent days.
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