PARIS: Euronext wheat fell for a third session on Friday, pressured by ample global supply and a tentative Middle East truce before US-Iran talks.
May milling wheat on Paris-based Euronext, was down 0.1percent at 195.25 euros (USD228.89) a metric ton by 1607 GMT.
The contract earlier touched its weakest since February 19 at 194.00 euros, the latest in a series of multi-week lows since Wednesday.
US-Iran negotiations planned this weekend in Pakistan were maintaining investor hopes of de-escalation in the Middle East conflict, after a two-week ceasefire announced earlier in the week.
The fragile truce helped push the dollar lower against other major currencies including the euro, adding pressure on Euronext.
“Without the war, the wheat market doesn’t look very bullish,” a futures dealer said. “There could be another selling wave depending on decisions this weekend in the talks.”
Grain markets have partly tracked surging energy prices during the conflict because crops like corn are used in biofuel and since rising fuel and fertiliser costs resulting from the war could affect crop production.
Attention was turning back towards abundant global supply. A monthly crop report issued by the US Department of Agriculture on Thursday included higher than anticipated projections of US and world wheat stocks.
Rain this week in dry parts of the US Plains is expected to ease drought, while showers are forecast to bring beneficial moisture to Russian wheat belts in the week ahead. News that Russia has approved an additional grain export quota of 5 million metric tons for the rest of this season underscored competition at a time of subdued importer demand.
“Falls on Euronext have put west EU wheat back in export contention but export demand throughout this week has remained generally low as buyers hope for further price falls,” a German trader said.
Russian exports so far in April were thought to be slower, partly because of low demand. But trader estimates still put Russian wheat exports in the first seven days of April at just over 500,000 tons, including around 120,000 tons to its largest destination, Egypt.
Traders noted continued buying interest from Egypt.
One Egyptian buyer was seeking about 30,000 tons of Russian 12.5percent protein wheat at around USD258 a ton cost and freight included for April shipment to Egypt.
Other Egyptian buyers were seeking 40,000 tons and 30,000 tons of 12.5percent Russian wheat for May shipment at undisclosed prices.
On Thursday Euronext wheat fell to a new six-week low as progress towards talks between Israel and Lebanon reinforced hopes of de-escalation in the Middle East conflict while US government crop data underscored ample supplies.
May milling wheat, the most-active position on Paris-based Euronext, settled 1.1percent down at 195.50 euros (USD228.95) a metric ton. The contract earlier touched its lowest since February 20 at 195.25 euros, below a previous six-week low on Wednesday.
Israeli Prime Minister Benjamin Netanyahu’s announcement that he was seeking direct talks with Beirut eased investor concerns after Israel’s intense bombing of Lebanon raised doubts over a US-Iran truce.
Crude oil, which had rebounded after Wednesday’s plunge, pared its gains on the news, removing some support for grain markets. A further rise in the euro against the dollar also pressured Euronext by making European grain more expensive overseas.
“Markets remain highly sensitive to geopolitics, currency swings and weather developments,” British merchant ADM Agriculture said of wheat.
A monthly crop report issued by the US Department of Agriculture towards the end of the European session added pressure on wheat as the USDA increased its outlook for US and world wheat stocks by more than expected.
Chicago wheat fell more than 1percent. Improving crop prospects in the Northern Hemisphere further capped prices. Rain this week in dry parts of the US Plains is expected to ease drought, while showers are forecast to bring beneficial moisture to Russian wheat belts in the week ahead.
In the European Union, consultancy Expana raised its forecast for the 2026/27 soft wheat harvest, citing broadly favourable growing conditions, while cutting EU export projections for next season due to better harvest prospects in North Africa and the Middle East.
European traders were also assessing export prospects for the remainder of this season.
French, Russian, Ukrainian and Romanian 11.5percent protein wheat were all quoted on Thursday in a similar range between USD233 and USD236 a ton free on board for May shipment.
Argentine wheat was only marginally cheaper at around USD230-USD232 a ton FOB, having now lost its dominant price lead in past months. Traders said an Egyptian buyer was seeking about 25,000 tons of Black Sea 11.5percent protein wheat for second half April shipment at around USD257 a ton cost and freight included, while an Algerian buyer was also seeking about 30,000 tons of Black Sea wheat at around USD264 a ton c&f for May shipment to Algeria.
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