European Union wheat prices fell on Monday, with benchmark Paris futures easing from an 11-week high in the last session, as they were pressured by heavy losses across commodity markets and improving crop weather in Europe. Commodity markets were rattled by official data showing that economic growth in China slowed in the first three months of 2013 to 7.7 percent from 7.9 percent in the final quarter of last year.
The concerns about China, the world's top consumer of raw materials, reinforced doubts about a global economic recovery and sent crude oil and metals plunging to their lowest levels in months. In Paris, front-month May milling wheat was down 2.25 euros or 0.90 percent at 247.25 euros a tonne by 1244 GMT. It had hit an 11-week high at 250.00 euros on Friday and was now supported by a previous resistance zone around 247 euros that it had breached in the last session.
A weekly crop survey by farm agency FranceAgriMer published on Friday confirmed a trend of wheat crops running behind last year's development pace. As of April 8, 37 percent of wheat crops had reached the 1-centimetre head stage, up from 23 percent the prior week but down from 96 percent a year earlier. Just 2 percent of wheat had reached the subsequent two-nodes stage, against 23 percent a year ago.
A lower euro, which makes grain from exporters like France and Germany cheaper for importers, helped curb the fall in Paris. German prices were marked down in line with Paris, with warmer spring weather helping to keep a lid on the market. Standard milling wheat for April delivery in Hamburg was offered for sale down 2 euros at 256 euros a tonne with buyers at about 254 euros.
Polish prices were higher in line with rising international markets in the last week, with internal demand and low farmer selling also supporting. Polish flour mills were said to be active buyers in the last week for April and May delivery, paying 985 to 1,025 zloty a tonne (239 to 249 euros) delivered mill depending on the region, up around 25 zloty (6 euros) on the week. Exporters were also active buyers of Polish wheat in the past week, traders said.
Comments
Comments are closed.