European Union benchmark wheat futures touched a 13-month low on Wednesday, pressured by concerns about global growth and a commodities selloff but staged a limited comeback in late business. But EU wheat reduced losses in late afternoon trade on hopes that the weaker euro would stimulate more export demand for EU grains.
Europe's benchmark wheat, Paris' January contract closed down 2.25 euros or 1.2 percent at 179.00 euros a tonne. The contract has earlier touched a 13-month low of 176.50 euros. European prices were weakened as US Corn, wheat and soyabean futures in Chicago all fell in early Wednesday trade, joining a broad sell-off in commodities tied to a firmer dollar and concerns about the global economy.
Global equity markets fell on Wednesday to six-week lows, with Wall Street on course for a sixth straight day of losses, as shrinking factory activity in China and a disappointing German bond sale increased recession fears. Commodity prices also fell, with copper hitting a one month-low and oil down. "I think clearly the correlation between the agricultural markets and the macro markets continues to be very strong and today is just another reflection of that," said Rabobank analyst Luke Chandler.