PARIS: Euronext wheat slid on Friday, retreating from a two-month high as negative export sentiment and rain hopes for parched US and European crops cooled grain markets after a rally this week.
September wheat on Paris-based Euronext was down 1.6% at 247.00 euros ($268.76) a metric ton at 1508 GMT. The contract had reached a two-month peak at 253.00 euros on Thursday.
Forecasts showing greater chances of rain in dry corn and soybean belts in the US Midwest, a stronger dollar and sluggish weekly US exports encouraged profit-taking in Chicago. “The buying wave ran out of momentum amid considerations that it is early days yet for US crops,” consultancy CRM Agri said, adding: “Russia’s huge carryover stocks kept a lid on European wheat prices.”
Export sentiment in western Europe was dented this week by a tender purchase by Algeria expected to be mainly sourced from Russia. Ample supplies of cheaper Russian wheat have tempered reaction to further signs that a Black Sea grain corridor from war-torn Ukraine may not be extended beyond mid-July. The return of rain to northern Europe eased crop worries, though some yield potential is thought to have been lost. Rain fell throughout Germany on Thursday night and Friday. “This will be positive in many areas but comes too late to prevent crop losses after dryness in the east and north,” a German trader said.
In Poland, export prices rose sharply, with tighter availability of wheat at a time of brisk port loadings. “Export shipments are strong,” a Polish trader said. “Ukrainian grains are not coming in large volumes anymore due to complicated transit procedures, and Polish supplies are difficult to buy because farmers are not selling.” Polish 12.5% protein new crop wheat quoted at around 1,065 zloty (240.1 euros) a metric ton for August/September delivery to ports, up 10 zloty this week.
In Gdynia, two ships are each loading about 30,000 metric tons of wheat for multinational trading houses to undisclosed destinations. One ship left Gdynia with 55,000 metric tons for Nigeria, and another will load 27,500 metric tons expected to be for the United States.
In Szczecin, two ships are also each loading 33,000 metric tons for unknown destinations while in Swinoujscie another is loading 33,000 metric tons for North Africa.