European wheat prices touched new contract lows on Tuesday, pressured by a sharp fall on US markets after better than expected crop ratings and a stronger euro against the dollar. New crop September milling wheat on Paris-based Euronext was down 1 percent to 171.00 euros ($191.55) a tonne at 1515 GMT after touching a contract low of 170.75 euros in earlier trade. The contract has lost 3.7 percent since the start of the month. December also hit a new contract low of 175.00 euros a tonne.
Traders noted the spread between old crop May and new crop contracts remained high just days before its expiry on May 10. "New crop prices remain under pressure in the absence of any serious concerns about 2019 production and good or even excellent prospects in Russia, but low prices encourage grain cooperatives to refrain from selling," a Euronext trader said. There is still plenty of time before harvest, he said. Euronext futures markets will be closed on Wednesday, May 1, for Labour Day.
The euro extended gains to top $1.12 on Tuesday after first quarter growth numbers for the euro zone were stronger than expectations. A rise in the European single currency makes euro-denominated products less competitive on the world market. Wheat futures in Chicago fell to a seven-week low after the US Department of Agriculture (USDA) rated the condition of the winter crop ahead of market expectations.
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