Wheat prices on major west European markets slipped on Friday, pressured by abundant harvests and a sharp fall in UNbeans in Chicago, traders said. Milling wheat futures in Paris were lower in afternoon trade. However, Euronext continued to consolidate in the narrow range seen this week after steep recent falls and with the market experiencing a holiday lull.
"We could have a month of hesitating between 125 and 135 euros before the maize campaign starts," one Euronext trader said, noting there was no further fundamental news. Euronext wheat found some support in brisk weekly export figures from the European Union, which showed nearly 500,000 tonnes of licences had been cleared. "We're not facing too much (export) competition at the moment where quality is being sought," the trader said.
But forecasts for a big French harvest that could reach 38 million tonnes and exceed last year's bumper crop continued to depress the market. Harvesting is finished in most regions and well advanced in coastal areas of northern France, local brokers said, adding that farmers in parts of rain-soaked Brittany were being forced to cut a wet crop and dry it afterwards.
On Euronext, benchmark November wheat fell 1.5 euros a tonne to 130 euros by 1556 GMT as it continued to hover above the contract low of 127.25 euros seen last Friday. Front-month wheat prices in Chicago were little changed as falling UN markets and an abundant world supply of wheat weighed but short covering provided some support. Chicago UNbeans plummeted on Friday, weighed down by disappointing crush figures and good US crop weather.
November feed wheat in London was down 0.10 pounds to 98.00 pounds a tonne, having touched a contract low of 97 pounds a tonne three times in the past week. "All the fundamental news is bearish," a trader said, noting that yields have been better than expected in France, Germany and the United States. "The yields coming in so far (in the UK) are slightly better than expected I gather," the trader said.
"If we get good weather next week - which is looking reasonable certain in England and Wales - we should crack on and you'll get a better assessment of what we've got," the trader said. Spanish wheat has retained earlier mild falls as demand to lock in deals for delivery in September and October met with lack of storage space in ports and lack of credit from banks.
Feed wheat in import-hungry Spain's leading grain port, Tarragona, was quoted at 135 euros a tonne, ex-store, for prompt delivery. "After the poor harvest, farmers aren't selling new crop at all, so demand is being covered to a greater extent by imports. Many inland merchants are buying in the ports to keep clients," one dealer said. Spanish port data showed just one grain shipment of more than 10,000 tonnes, in Tarragona, where a ship was unloading 21,500 tonnes of Romanian wheat.