EU wheat falls as US markets prices lower

30 Aug, 2016

European wheat fell on Friday as US markets slumped to their lowest in nearly a decade on technical selling and ample global supplies, traders said. Benchmark December milling wheat on Paris-based Euronext unofficially closed 1.50 euro, or 0.9 percent, lower at 163.75 euros a tonne at 1630 GMT.
By the same time wheat on the Chicago Board of Trade was down 3.8 percent at $4.07-3/4 a bushel.
Traders noted that European prices managed to hold above 164 euros, a prices traders said was a key support, until just before the close.
Operators were awaiting the results of Egypt's tender to buy wheat for shipment between September 26 and October 5, with seven suppliers having submitted offers.
Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), cancelled its latest tender on Tuesday without giving a reason.
A provisional quality poll by farm office FranceAgriMer showed the soft-wheat crop in France, the European Union's top producer, was showing varying quality, marked by high protein levels and low specific weights.
Protein levels tend to rise when yields are low and France harvested one of the worst wheat crops in years after heavy rainfall in late May and early June, with yields seen falling more than 30 percent from 2015.
The soft wheat harvest was now over in the country, FranceAgriMer said earlier in the day.
Grain maize crop conditions remained stable in the week to August 22, with 63 percent of the crop in good/excellent condition, though traders noted that the warm weather since that date is continuing.

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