PARIS/HAMBURG: Euronext wheat fell on Friday following a day-earlier slide in Chicago to move further back from a two-week high, while maize futures extended gains as a heatwave in France raised worries about crop damage.
September wheat on Euronext was down 1.1percent at €201.00 (USD230.43) a metric ton at 1608 GMT. It had reached its highest since June 3 at €205.00 on Thursday before settling slightly down.
A lower close for Chicago wheat on Thursday, as a stronger dollar and lower crude oil triggered profit-taking before a US holiday, spilled over into the Euronext Friday session.
Volumes were light with Chicago markets closed for the Juneteenth holiday.
After an import tender by Algeria supported a rebound on Euronext earlier in the week, expectations of large global wheat supply together with investor relief over the signing of an outline deal to end the Iran war weighed on prices.
“There aren’t a lot of bullish factors for grain markets, apart from the fact they’ve already hit some lows lately,” a futures trader said. “The French heatwave won’t change the world outlook and it’s good for wheat quality.”
Wheat crops nearing maturity were seen as less vulnerable than maize to temperatures that could reach 40 degrees Celsius in parts of France in the coming days.
Soft wheat and maize crop conditions in France declined slightly last week while winter barley harvesting got under way ahead of the heatwave, farm office FranceAgriMer said.
November maize on Euronext was up 0.9percent at €214.00 per ton, a new two-week high.
In Germany, heavy rain on Friday in northern and eastern grain belts should help wheat withstand high temperatures, a German trader said.
Like in France, hot, dry weather had accelerated the ripening of barley, with harvesting now starting in south and central Germany.
In exports, Russian 11.5percent protein wheat for July shipment was seen as cheapest at around USD231-USD233 a ton free on board. Ukrainian and Romanian were seen about USD3-USD4 over Russian, and French USD6-USD8 over Russian.
Two buyers were each seeking 25,000 tons of Black Sea feed wheat for August shipment, one from Italy seeking about USD250 a ton cost and freight, one from Tunisia seeking about USD255 a ton c&f.
Germany’s wheat export shipments so far in June included vessels with 35,000 tons for Angola, 30,000 tons for Cameroon and 30,000 tons for Spain.