Euronext wheat futures fell to a six-month low on Wednesday as worries about the coronavirus outbreak fuelled fresh losses in financial markets, outweighing support from brisk exports for European wheat.
Benchmark May milling wheat on Paris-based Euronext settled 0.75 euros, or 0.4%, down at 177.25 euros ($199.99) a tonne.
It earlier fell to 176.75 euros, its weakest since Sept. 13, and below a five-month low touched on Monday.
New-crop futures were also weaker. December wheat fell back below the psychological 180 euro threshold to settle at 179.50 euros, although bargain-buying helped the contract hold above Monday's low of 178.00 euros, dealers said.
Global equities markets slid again as investors pondered whether monetary and fiscal stimulus can curb the economic toll of the coronavirus outbreak, which the World Health Organization for the first time called a pandemic.
"The coronavirus is on everyone's minds," one futures dealer said.
"If it abates then external markets will rally, but ours may rally less as consumers have covered a lot around recent lows."
Several importing countries have held tenders this week, including Tunisia which booked 125,000 tonnes of wheat on Wednesday.
European traders were also awaiting results of a tender by Algeria, the biggest foreign buyer of French wheat.
Farm office FranceAgriMer increased its forecast for French soft wheat exports outside the European Union this season for the sixth month in a row, saying it saw no immediate impact from a coronavirus outbreak on brisk demand for French supplies.
It now sees French soft wheat shipments outside the EU reaching 12.7 million tonnes, up from 12.6 million projected last month.
Weekly Euronext data showed financial investors reduced their net long position in the exchange's wheat futures and options for the second week in a row last week, nearly halving their longs.
Comments
Comments are closed for this article.