EU wheat falls on improving crop weather in Europe

24 Apr, 2018

European wheat futures were lower on Friday and on track for a second consecutive weekly loss, weighed by a slide in Chicago futures and improving crop weather in Europe. May milling wheat, the most active contract on the Paris-based Euronext exchange, was down 0.50 euros, or 0.3 percent, at 163.50 euros a tonne by 1543 GMT. "I hear more people optimistic on the new crop," said a futures dealer, with a warm spell expected to help crop development after a cold, soggy start to spring.
A weak euro helped to limit losses. US wheat, corn and soybean futures fell on Friday, with forecasts for favourable crop weather across key growing areas sparking a round of fund liquidation ahead of the weekend. Volumes in Europe remained thin, with major trade events this week in Hamburg and Kiev keeping some European operators away from their desks, while grain markets were generally awaiting clearer indications about this summer's harvest.
Weekly data from farm office FranceAgriMer showed that soft wheat crop ratings were unchanged in the week to April 16 compared with the previous week, at 78 percent good/excellent. Spring barley sowing had ended by Monday while grain maize planting remained well behind last year's pace, with 6 percent of the area sown against 49 percent a year ago.
However, traders expect maize growers to have made swift progress during this week's warm spell and ahead of showers forecast from Sunday. In France, rail strikes remained a focus for market participants, with concern that prolonged stoppages could hurt both inland consumers like feed and starch makers, and export operators.
"We are seeing more of a transport market than a grain market," one physical broker said. "We've spent the past three days making calls to find alternative transporters." November feed wheat futures in London rose 0.25 pounds or 0.2 percent to 146.75 pounds a tonne, boosted by the weakness of sterling.

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