PARIS: Benchmark wheat prices on Euronext fell over 2percent on Wednesday to their lowest in almost six weeks as a US-Iranian ceasefire agreement raised expectations of easing disruption to energy supplies, traders said.
May milling wheat, the most-active position on Paris-based Euronext, settled 2.4percent down at 197.75 euros (USD230.99) a metric ton. The contract earlier struck its lowest since February 26 at 197.00 euros, with the breaching of the psychological 200 euro threshold adding to selling momentum.
A rise in the euro against the dollar also pressured Euronext by making European grain more expensive overseas. Chicago wheat dropped around 3percent, with the US market further curbed by rain forecast in dry parts of the US Plains.
Crude oil plunged below USD100 a barrel as the two-week ceasefire between Washington and Tehran averted a threatened US escalation in the war and raised the prospect of a gradual resumption of shipping through the Strait of Hormuz.
Grain prices have broadly tracked fluctuations in crude oil during the war, reflecting the use of crops like corn in biofuels and potential repercussions on harvests from rising energy and fertiliser prices.
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