European wheat futures edged lower on Friday to touch a new one-week low as weakness in Chicago, day-earlier gains in the euro, and expectations of rising global supply kept a lid on prices. Movements were limited and trading light, however, as operators were reluctant to take positions before harvest prospects become clearer and with closely watched monthly US government crop forecasts looming next Wednesday.
"There is this tension in grain markets between the tight old crop supply and what we're promised for this year's harvests," a dealer said. "We're stuck in a range for now." Benchmark November milling wheat on the Paris futures market was down 0.50 euros or 0.24 percent at 203.75 euros a tonne by 1529 GMT. It earlier set a new one-week low at 203.75 euros. The European market tracked lower US wheat futures.
Traders reported a clutch of export sales for European wheat this week, including at least 425,000 tonnes of French wheat tipped for Algeria and 600,000 tonnes from Germany and the Baltic Sea region bought by Iran. The European Union on Thursday announced 330,000 tonnes of weekly export licences for soft wheat, taking the season's total to 18.2 million tonnes. .
The euro eased after hitting a three-month high against the dollar on Thursday, but remained well up over the week. A higher euro makes Paris prices more expensive in dollar-priced export markets. Warm, sunny weather this week has helped ease crop worries in France, where grains have faced growth delays after cold and wet weather in the past month.
But there was still concern about rain-delayed maize planting in France and Italy, as well as the United States. In a weekly update on Friday, farm office FranceAgriMer said 89 percent of the grain maize crop had been sown as of June 3, unchanged from the prior week.
The amount of crops rated in good or excellent condition fell for the second straight week, to 62 percent from 67 percent a week earlier. In Italy, the area sown with maize has fallen by as much as 20 percent on year due to heavy spring rain, farmers' association Confagricoltura said on Friday, in an estimate based on official data from some regions.