PARIS: Euronext wheat futures ended little changed on Thursday, holding near a one-month low as traders weighed rising expectations for global supplies against a poor French harvest. Front-month September milling wheat on Paris-based Euronext, settled unchanged on the day at 179.25 euros ($212.84) a tonne, after earlier touching a new low since end-June at 178.75 euros.
Paris prices were pressured by renewed weakness in Chicago futures and the recent strength in the euro against the dollar. An estimate projecting a record Canadian wheat crop this year reinforced expectations of plentiful global supplies after increased forecasts for Russia's harvest.
Favourable conditions for US spring wheat, corn and soybeans also weighed on wheat markets. "In summary, a week with prices driven lower by ongoing optimism over US spring crop production and declines in Russian export prices due to an improved crop outlook," British merchant ADM Agriculture Ltd said.
In France, a poor soft wheat harvest expected to drop by around a quarter from last year has curbed export activity and shifted trading towards domestic outlets like livestock feed makers. In Germany, traders again noted purchase interest from France in German wheat with 11-11.5% protein content that meets Algeria's import specifications for delivery starting in September.
"French traders again appear to be taking some German wheat to supply sales to Algeria," a German trader said. "French purchase ideas are about one euro under Euronext December, but sales offers are about level or 1 euro over Paris."
With harvesting virtually over in France, hot and sunny weather was allowing rapid wheat harvest progress in Germany. "Weather is just about perfect and I expect very fast harvesting up to early next week," the trader said. "We have growing confidence in a decent sized harvest with no serious quality problems visible so far despite a slight drop in protein levels in some regions."
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