Paris wheat futures fell for a third straight session on Wednesday to hit a new 2-1/2 month low as the market continued to focus on the impact of Europe's large harvest. The European market failed to find support from Chicago futures, which saw hesitant trading as investors turned their attention to the US Department of Agriculture (USDA) August 12 crop report. That is keenly awaited for updated estimates after corn and soybean plantings during a rain-soaked spring.
Benchmark December milling wheat on the Paris-based Euronext was down 1.50 euros, or 0.9%, by 1513 GMT at 174.00 euros ($195.16) a tonne, its weakest since May 14.
After breaking several support levels this week, the contract was approaching a life-of-contract low at 171 euros. "The market remains weighed down while we wait for a clearer picture on US corn, with perhaps some answers in Monday's USDA report," a futures dealer said.
"Wheat production in Europe is generally looking good and the Egypt tender showed that French wheat is not yet close to seeing export sales there." Egypt, the world's largest wheat importer, booked 415,000 tonnes of Russian, Romanian and Ukrainian crop in a tender on Tuesday, passing on a more expensive offer of French wheat.
France's wheat harvest is almost over, reflecting rapid field work in western Europe during hot, dry weather in the past month. The French farm ministry on Tuesday raised its estimate for the soft wheat harvest to a four-year high of 38.2 million tonnes, although that was still below many market estimates at around 39 million tonnes.
In Germany, production is also expected to be sharply higher this year but repeated rain delaying the end of harvesting is causing concern locally about quality damage. Harvesting was again interrupted by rain on Wednesday in the final areas to be cut, especially in the northern and north-eastern export regions of Schleswig-Holstein and Mecklenburg-Vorpommern.