European Union wheat prices were lower on Monday with parched crops in both Russia and the southern US Plains set to benefit from much needed showers this week. December milling wheat on the Paris-based Euronext settled 1.25 euros or 0.7 percent lower at 175.00 euros a tonne. The contract had earlier fallen to a low of 174.25 euros, its weakest level since September 30.
Dealers said the setback was led by Chicago. US wheat futures fell to the lowest level in almost one month on Monday, pressured by forecasts for crop-friendly rains and plentiful global supplies. The western European wheat market also remained weighed down by large harvests across the continent, including a record crop in France, and export competition from Black Sea and Baltic origins.
Dealers said buying interest from industrial users helped the European market climb off the day's lows. Feed wheat futures in London also fell with November ending 1.25 pounds or 1.1 percent lower at 113.00 pounds a tonne. Britain's farm ministry is expected to issue estimates for this year's UK cereals and oilseed crops on Tuesday.
The report was originally scheduled to be released on October 15 but was delayed with the ministry saying its figures were "undergoing additional quality assurance to ensure their robustness." The ministry also said that estimates for UK wheat and barley crops issued on October 9 should be "treated with caution."