HAMBURG: European wheat futures fell to their lowest in over two weeks on Monday, pressured by a sharp fall in US corn markets as weather forecasts pointed to rain relief for dry parts of the US Midwest.
September milling wheat on Paris-based Euronext was down 2.25 euros, or 1.0%, at 209.00 euros ($253.37) a tonne at 1612 GMT.
The contract earlier slipped to its lowest since May 26 at 206.50 euros, before recouping losses in step with Chicago wheat. US markets fell sharply on Monday on forecasts of rain in parched US grain belts.
“The market has absorbed a lot of bad crop news but now it is factoring in positive elements for US production,” a French trader said.
Traders in France were monitoring a hot spell, with highs of 30 degrees Celsius (86°F) or above expected for the start of the week.
However, storms forecast from mid-week were expected to bring moisture and more moderate temperatures, limiting the risk of stress to wheat and other cereal crops that have generally been in good condition.
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