PARIS: Euronext wheat futures fell on Tuesday to a new three-month low as a sharp rise in the euro and improving prospects for northern hemisphere cereal harvests pushed prices through a key support level.
Front-month September milling wheat on Paris-based Euronext ended down 1.50 euros, or 0.8%, at 177.00 euros ($200.42) a tonne. In closing trade, the contract touched its lowest since March 18 at 176.50 euros.
It had dropped below a previous three-month low of 178.25 euros touched twice in the past week and which was acting as a chart support level.
Chicago wheat eased earlier to trade near Friday's nine-month low before steadying in US trading.
The US government estimated on Monday that the condition of US winter wheat improved last week, while harvesting of the crop progressed.
In Russia, the world's biggest wheat exporter, latest analyst forecasts underscored prospects for a large harvest.
In France, early stages of winter barley harvesting were showing crop yields and quality that were better than feared during a dry spring, traders said.
"We're seeing some classic harvest pressure on the market," a futures dealer said.
The stronger euro, which was supported by encouraging economic data in the euro zone, also weighed on Euronext by making European grain more expensive for export at a time of modest demand for the upcoming 2020/21 season that starts in July.
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