European wheat futures fell again on Monday to a 2-1/2 month low as technical selling in Chicago wheat and a jump in the euro offset a wider rebound in financial markets following last week's rout. Benchmark May milling wheat on the Paris-based Euronext settled 1.25 euros, or 0.7%, lower at 183.00 euros ($204.45) a tonne, just off an earlier low of 182.75 euros that was its weakest since December 12.
Chicago wheat fell in contrast to firm US corn and soybean futures, with traders saying investment funds were unwinding of long wheat positions. "It really looks like the funds want to dump their wheat longs," one futures trader said.
Euronext wheat was also capped by a sharp rise in the euro against the dollar. Investor expectations of interest rate cuts by the US Federal Reserve and other central banks to counter economic fallout from the coronavirus pushed the dollar lower and spurred a rebound in equity markets.
Weekly European Union data showed EU soft wheat exports so far in the 2019/20 season had reached 19.11 million tonnes, up 60% from a year ago. In France, soft wheat shipments to non-EU countries last month reached their highest level for a February in at least 10 years at 1.46 million tonnes, an initial estimate based on Refinitiv loading data showed. In Germany, standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at 4.5 euros over the Paris May contract compared with 3 euros over on Thursday. Buyers were offering up to 3.5 euros over Paris.
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