Euronext wheat was mixed on Wednesday as spot futures eased after this week's export-fuelled surge and new-crop prices edged higher due to continuing dry weather in much of Europe. Front-month May milling wheat on the Paris-based Euronext exchange settled down 0.50 euro, or 0.2%, at 203.25 euros ($219.73) a tonne.
It had climbed on Monday to 206 euros, a life of contract high and the loftiest spot price in more than a year, as signs Russia might temporarily stop wheat shipments raised the prospect of an acceleration in already brisk western European exports.
"Matif (Euronext) climbed too high and buyers stepped back," one trader said. But spot prices remained well supported by brisk European Union shipments and declining availability of exportable supply for the end of the July-June season.
New-crop futures were firm, with traders making adjustments in the spread against the May contract and an ongoing dry spell raising risks about harvest prospects. Weather forecasts continued to show no rain for the rest of the week in much of northern Europe, including major wheat belts in France and Germany, that leave fields even more parched.
Germany's agriculture minister said on Wednesday she was concerned about the impact of continued dry weather on crops and said a third drought year could hit farms "incredibly hard".
"Currently the problem is not irreversible for grains and some decent rain in coming weeks would enable wheat to develop well," one German trader said, adding persistent dry weather could lead to rising concern that harvest forecasts would need to be reduced
Spot prices in Germany remained underpinned by a busy export loading programme. Standard bread wheat with 12% protein for May delivery in Hamburg was offered for sale little changed at about 6.50 euros over the Paris May contract. Buyers were offering around 5.50 euros over Paris.
"Germany's strong flow of wheat exports is expected to continue into at least the middle of May and Russia's signalled export restrictions could shift more demand to the EU," the trader said.