PARIS: European wheat prices tracked US markets lower on Tuesday, pressured by favourable weather outlook for both the US Midwest and European crops.
Front-month September milling wheat on Paris-based Euronext, closed 1.5% lower at 205.75 euros a tonne.
France, the European Union’s largest wheat grower, is experiencing temperatures hovering around 30 degrees Celsius (86°F) but storms forecast and a drop in temperatures later in the week were expected to bring moisture, limiting the risk of stress to crops that have generally been in good condition.
“The favourable weather conditions mixing rain and sun in France should benefit crops,” said Cedric Renault, head of the commodities desk at Credit Agricole’s CACEIS division told an online webinar on grains and oilseeds.
“But nothing is settled yet and conditions will need to be monitored,” he added.
The harvest in France is expected to be to be later than usual this year, with the bulk expected to start in late July or early August, after cold weather earlier in the season delayed crop development.
In Germany, a new harvest forecast reinforced hopes of a good crop this summer after better weather in recent weeks.
Germany’s 2021 wheat crop of all types is expected to increase by 3.8% on the year to 22.98 million tonnes as recent good weather helped crops, the country’s association of farm cooperatives said on Tuesday. This was up from its previous harvest forecast in May of 22.66 million tonnes.
“The forecast echos market expectations that wheat has caught up on delayed growth in June after the cold weather in April and May,” one German trader said.
“The picture is looking positive and with normal weather patters in the next few weeks, without extreme drought or rain, Germany could achieve a good crop with good export supplies for the new season.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 1.5 euros under Paris December. Buyers were seeking 2.5 euros under Paris.
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