European wheat futures fall from three-week high

European wheat futures fell from a three-week high on Thursday, as dealers awaited clearer indications on crop stress from heatwaves in Europe and the Black Sea region. Traders monitoring the heatwave in western Europe so far see crop risks as moderate in France. Front-month September milling wheat on the Paris-based Euronext was down 0.75 euro, or 0.4%, at 183.00 euros ($208.35) a tonne at 1604 GMT, having earlier hit 185.25 euros, its highest since June 3.
A hesitant Chicago market ahead of US government acreage estimates on Friday was also a factor. "The weather is looking better this week in the US which could help fields dry out a bit, and the market is waiting for the USDA planting report," a futures dealer said. "People are taking a mixed view of the heatwave - it could reduce yields a little while also boosting grain quality," a French cash broker said.
Germany experienced temperatures of between 32-37 degrees on Tuesday and 40 degrees is forecast on Wednesday. "Sunshine and temperatures this high will cause some stress to crops but nationally I think the market expects the impact to be marginal," one trader said. "Wheat development is approaching its end and people are not expecting a major impact." Standard bread wheat with 12% protein for September onwards delivery in Hamburg was offered for sale unchanged at 4 euros under Paris December.
In Poland, prices fell in the last week, pressured by extensive sales offers meeting few buyers. Domestic prices for 12.5% protein milling wheat fell by around 20 zloty a tonne to 720-750 zloty a tonne (169.2-176.3 euros) for June delivery. "Most mills seem to have supply cover for June and the first two weeks in July and some are waiting for the harvest," one Polish trader said. "Lower prices are expected by some buyers due to the good crop expected which would bring large supplies."
"Weather in Poland is very hot now with temperatures around 30 degrees, but it should not damage grains like wheat." Prices for new crop 12.5% protein milling wheat were well below old crop at 660-700 zloty a tonne delivered to mills from the harvest. Exporters are offering to pay 760-765 zloty a tonne for old crop 12.5% protein wheat, little changed on the week.