Euronext wheat futures fell on Monday to trade near a six-month low while rapeseed prices tumbled as financial markets were again rattled by the risk of severe economic disruption from a fast-spreading coronavirus outbreak.
Benchmark May milling wheat on Paris-based Euronext settled down 2.25 euros, or 1.3%, at 175.25 euros ($195.61) a tonne.
It earlier fell to 174.50 euros, close to a six-month low of 174.25 euros hit last Thursday.
Rapeseed, which is reliant on biodiesel demand, fell much more steeply in the face of a latest nose-dive in crude oil prices.
May rapeseed settled 17 euros, or 4.8%, lower at 335.50 euros a tonne. It earlier dropped as much as 6% to 330.75 euros a tonne, a life of contract low and the weakest spot price since late April 2018.
"The market is in panic mode for sure," a futures dealer said.
Investors were increasingly fearing a recession due to the coronavirus outbreak, which has led countries to impose drastic restrictions on daily activity.
"Coronavirus is the number one theme, but no one really has any serious answers to the big question - how the economic disruption may cut grains demand," a German trader said.
In Germany, cash premiums in Hamburg were little changed, with sellers unwilling to deal at current low price levels.
Standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at around 6.0 euros over the Paris May contract.
Buyers were offering around 4.5 euros over Paris.
A steady export programme was still underpinning prices in Germany, as in France.
Weekly European Union data showed the bloc plus Britain had exported 22.2 million tonnes of soft wheat so far in 2019/20, up 72% from a year ago.
Many traders were also working from home because of anti-coronavirus measures and school closures in France and Germany.
"It is the first time I have done working from home in the grains business, but overall things have worked well," the trader added.
But others said there was concern about supply chains coming under strain if prolonged lockdowns were imposed.
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