PARIS: Euronext wheat edged lower on Monday, pressured by a pre-weekend slide in Chicago as traders await further clues on harvest and export prospects for the upcoming season.
Rapeseed dropped to its weakest in nearly three months as oilseed markets were sapped by a plunge in palm oil futures and recent weakness in crude oil, dealers said.
September milling wheat on Paris-based Euronext settled down 0.8% at 388.25 euros ($408.44) a tonne.
It earlier fell to 382.50 euros, its lowest since June 9, extending a pullback from an 11-day high of 400.75 euros struck on Friday.
Euronext was pressured by a sharp drop for Chicago wheat on Friday when a stronger dollar and US harvest progress encouraged selling.
But the pullback on Euronext was seen as overdone by some dealers given weather risks for the European harvest, war disruption to Ukrainian supply and signs of importer demand.
Traders were awaiting the resumption of US trading on Tuesday, following a holiday closure on Monday, for further direction as grain markets were torn between crop news and wider economic fears on financial markets.
“There’s a period of uncertainty under way on the wheat market, even if fundamentally the situation is still very tight,” consultancy Agritel said in a note.
The European Union’s crop monitoring service MARS on Monday lowered its 2022 yield forecasts for wheat and most other grain crops as dry conditions persisted.
In France, Agriculture Minister Marc Fesneau said a heatwave last week should have a limited effect on cereal yields, echoing market views.
Algeria, the biggest overseas buyer of EU wheat, has issued a tender to import wheat in August, with bids due on Tuesday, traders said.
In rapeseed, August futures settled 3.5% lower at 739.75 euros a tonne, after hitting their lowest since March 29 at 738.25 euros.
Malaysian palm oil plunged nearly 9%, pressured by a resumption in Indonesian exports.
Canola planting progress in Canada and plans to curb biodiesel use in some EU countries were also pressuring rapeseed, analysts said.