PARIS: Euronext wheat eased on Friday in step with Chicago futures as criticism of China by US President Donald Trump clouded prospects for resolving a trade dispute that has hit US crop exports.
Rising global wheat supply, highlighted by consultancy Sovecon’s latest increase to its Russian harvest forecast, also curbed Euronext after prices hit a near two-week high on Thursday.
December wheat on Euronext settled 0.7 percent down at 189.25 euros (USD219.78) a metric ton, having hit a peak of 190.75 euros on Thursday - retreating closer to a contract low of 185.00 euros from last week. Chicago wheat shed over 1percent to set a five-year low, tracking losses in soybeans as traders saw diminishing chances for a US-China settlement that could revive stalled soybean trade.
US President Donald Trump threatened to hike tariffs against China and cancel a planned meeting with President Xi Jinping, in social media comments that appeared prompted by Beijing’s announcement of more rare earths export controls.
“Trump’s post was a bombshell,” one futures dealer said. The dollar fell in market reaction to the comments, pushing up the euro in an additional drag on Euronext.
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