European wheat prices fell to a two-week low on Monday following a sharp drop on US markets, with traders still waiting for a clearer picture on any potential damage from the hot weather that hit western Europe in the past week. Front month September milling wheat on Paris-based Euronext, was down 1.35% by 1555 GMT to 178.00 euros ($201.23) a tonne, the lowest prices seen on the contract since June 20.
Most traded December was down 1% to 183.25 euros per tonne. By the same time, most traded wheat on the Chicago Board of Trade was down 4.9%. Traders noted that despite a cut in the estimates for Russia's wheat crop and exports due to negative impact of June's dry, hot weather, the harvest in the world's largest wheat exporter remained hefty. "Even if the estimates are lowered, Russia maintains its seat of major exporter," a trader said.
IKAR, a leading agriculture consultancy in Moscow, cut its forecast for Russia's 2019 wheat harvest by 700,000 tonnes to 79.3 million tonnes on Monday. Russia harvested 72.1 million tonnes of wheat in 2018. In France, the wheat harvest has started with first cuttings made in the very early regions in the southwestern part of the country where crops had mostly been spared the heatwave. First results showed high yields but poor protein. "When there are good yields there is a dilution of protein levels. But these are the earliest wheat crops so they are not indicative," one broker said.