PARIS: New-crop wheat futures on Euronext fell to new life-of-contract lows on Wednesday as decent harvest prospects in the northern hemisphere maintained supply pressure.
September milling wheat on the Paris-based Euronext exchange settled 1.50 euros, or 0.9 percent, down at 171.25 euros ($191.06) a tonne.
That was below a previous low of 172 euros on Tuesday and also marked the weakest level for a second-month price on Euronext in almost a year.
Chicago wheat slipped to a six-week low as Tuesday's slight bounce petered out. The focus on supply outweighed potential support for Western European wheat from further euro weakness against the dollar.
A higher than expected official estimate for Canadian wheat sowings on Wednesday added to supply pressure created recently by favourable growing conditions for US and Russian wheat.
Forecast rain this week in western Europe was also tempering concerns about dry conditions in the region. "All the news since the start of the week has been going in the same direction," one futures dealer said.
"The Statscan figures reinforce the idea that we are going to have plenty of wheat next season."
Statistics Canada projected the country's wheat area this year at 4 percent above last year's level, exceeding the average trade expectation, with farmers set to shift away from canola amid a dispute with China over shipments of the oilseed.
In the Black Sea region, favourable weather during spring grain sowing in Russia and Ukraine is increasing the chances of another large harvest, according to analysts and traders.
In the European Union, a warm spell in the past week had increased worries about dry conditions in zones yet to recover fully from drought in 2018.
But unsettled weather this week is expected to bring some showers to much of the region, including top EU wheat producer France.
Front-month May wheat on Euronext settled 1 euro lower at 181.50 euros, just off an earlier six-week low of 181.25 euros. French port data continued to show a long line-up of export loadings.
However, traders said the loading programme reflected previous sales as well as logistical delays, with prospects limited for fresh export deals before the end of the season on June 30.
The market will receive an indication of export competition in a tender being held by Tunisia on Thursday. Weekly data from Euronext showed financial investors expanded their net short position in the exchange's wheat futures and options in the week to April 19.
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