PARIS: European wheat futures ended lower on Friday to hold at a two-month low as supplies from northern hemisphere harvesting hung over the market.
September wheat on Paris-based Euronext settled down 1.0% at 224.50 euros ($239.99) a metric ton. In late trade, the contract touched its weakest level since April 24 at 224.25 euros, just below a previous two-month low from Thursday.
A weaker euro encouraged Euronext to steady earlier in the day but a sharp fall for Chicago wheat in US trading added late pressure. “For wheat, an expanding northern hemisphere harvest is bringing an influx of supplies and promising US yield results, while estimates for Russia’s drought-reduced wheat crop have stabilised,” consultancy CRM Agri said in a note.
In top wheat exporter Russia, where weather setbacks pushed Euronext prices to one-year highs last month, consultancy IKAR this week slightly raised its forecast for the wheat crop.
Harvest progress across the Black Sea zone was contributing to supplier pressure, though traders were awaiting a clearer picture. “I think the market is seeking indications of harvest yields in Russia, Romania and Ukraine,” one German trader said.
“There is talk of mixed wheat harvest yields in Romania although work is still in its early stages. But there is still an overall optimistic view of Romania’s crop.” Traders noted very competitive Romanian prices.
Romanian 12.5% protein wheat for July shipment was on Friday around $230-$234 a ton FOB against $233-$237 on Thursday, while Russian 12.5% protein wheat for Black Sea July shipment was $230-$235 a ton FOB against $232-$233 on Thursday.
Ukrainian wheat was also offered cheaply to EU buyers. Ukrainian old crop 11% protein wheat was offered to north Italian buyers at 218 to 220 euros a ton including delivery by train.
In France, port loading data compiled by Refinitiv showed a rare wheat cargo for Vietnam, which traders said was for animal feed wheat. Traders were watching for signs of new-season demand for French barley from its main export market China, which is in a trade row with the EU.
French wheat crop conditions were steady last week but market participants still expect harvest production to plunge to a four-year low after a wet growing season including more downpours this week.
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