PARIS: Euronext wheat futures edged higher on Wednesday as an easing euro helped the market to consolidate after a three-month low while traders assessed early results from cereal harvesting in Europe.
Front-month September milling wheat on Paris-based Euronext was up 0.25 euros, or 0.1%, by 1556 GMT at 177.25 euros ($199.80) a tonne. It briefly fell in morning trade to 176.50 euros, matching Tuesday's three-month low.
Chicago wheat ticked lower to remain near a nine-month low struck last week. Wheat markets have been under pressure from improving prospects for northern hemisphere production, with an advancing US winter wheat harvest showing some better than expected yields and analysts raising forecasts for Russia's crop.
In France, winter barley harvesting, often a pointer for the later wheat crop, had shown some results that were better than feared during a dry spring. But there were also reports of weaker yields in what is expected to be a very contrasting 2020 cereal crop. "There are some big differences in barley yields, though quality is decent," one French broker said.
"The storms being forecast could hold up field work." A hot spell this week has allowed winter barley harvesting to accelerate and raised expectations that some wheat fields could be cut. Storms are forecast from Thursday.
A fall in the euro lent some support to Euronext after a sharp rise on Tuesday had contributed to the three-month low by making European grain more expensive for export at a time of modest demand for the forthcoming 2020/21 season.
Weekly Euronext data showed financial investors reduced their long position for a fourth consecutive week in Euronext's wheat futures and options in the week to June 19.
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