PARIS: European wheat futures fell on Friday as traders locked in profits at month-end after a rally of more than 10percent in July, fuelled by renewed concern about Black Sea shipments.
September milling wheat on Paris-based Euronext was down 2.9percent to €222.75 (USD256.54) a metric ton at the end of the daily session. It was trading at €202.0 a ton at the end of June.
The contract fell suddenly in tandem with the benchmark one in Chicago in afternoon trade.
“It’s July 31, wheat had gained 20 euros since the start of the month, some people just wanted to take the money before going on holiday,” a French trader said. Another trader said the move did not reflect a bearish shift:
“The news is not necessarily negative, but you know what you have; you don’t know what you get.”
Recent attacks by Russia and Ukraine on grain infrastructure and vessels have disrupted cargo movements and raised risks for importers in the Middle East, Africa and Asia, helping support global grain prices.
But that risk premium eased on Friday, with no fresh reports of attacks on major grain hubs, traders said.
“The markets might take a breather to see how exports from the two countries continue, especially if shipowners are willing to send their vessels to Russian ports,” a German trader said.
A stronger euro weighed on sentiment as the EU seeks export sales to replace Black Sea
supplies.The European Commission on Thursday cut its 2026/27 EU grain and oilseed production forecasts, including an 8percent drop in wheat output.
Final stocks were seen tightening to 12.9 million tons, down from 13.8 million forecast last month and 16.5 million at the end of June this year.
“The supply of wheat in the EU is therefore likely to become noticeably tighter,” Commerzbank analyst Carsten Fritsch said in a note.
Meanwhile, logistics problems for German grain transport were underlined as river Rhine shipping was hindered by water levels falling to around
record lows on Friday.
Comments