Euronext wheat futures fell to a six-week low on Monday, sapped by an advancing harvest in western Europe and the Black Sea region that was set to yield ample supplies for export markets. Paris prices were also curbed by a six-week low for US wheat and a broad retreat on commodity markets as investors fretted about a slowing Chinese economy.
December milling wheat on Euronext was down 2.00 euros or 1.1 percent at 182.25 euros a tonne by 1611 GMT, after earlier hitting its lowest since June 22 at 181.75 euros. Traders said the market was giving up gains made during a weather-driven rally in June and could fall to around 178 euros to complete the pullback. Dry and hot conditions last month in parts of Europe, along with drought in Canada and heavy rain in the United States had raised concerns about damage to wheat yields and quality.
"We're seeing decent harvests pretty much everywhere despite the weather fears," one futures dealer said. "US and European wheat is going to have to become cheaper to be competitive for export." The European Commission trimmed its monthly estimate of the EU soft wheat crop by 500,000 tonnes to 139.5 million, still be one of the largest ever. It made a much steeper cut to its maize forecast, reflecting expectations that maize will be the cereal to suffer most weather damage.