Wheat prices in the EU continue to decline

On Friday, wheat futures on the Euronext exchange fell after the previous day’s decline in Chicago, falling further from their two-week high, while corn futures continued to rise amid heat waves in France that raised concerns about crop damage.

Wheat for September delivery on Euronext fell 1.1% to €201.00 ($230.43) per metric ton at 16:00 GMT. On Thursday, they reached their highest since June 3 at €205.00 before retreating slightly.

A stronger dollar on Thursday and lower oil prices prompted profit-taking ahead of the American holiday.

Selling volumes were low as Chicago markets were closed for the Juneteenth holiday.

After Algeria’s wheat import tender helped Euronext prices recover earlier in the week, expectations of significant global wheat supplies, as well as investor relief over the signing of a preliminary agreement to end the war with Iran, weighed on prices.

“There aren’t many factors driving the grain markets higher, other than the fact that they’ve already hit some lows recently,” said one futures trader. “The French heatwave won’t change the global outlook and will be beneficial for wheat quality.”

Wheat, nearing maturity, is estimated to be less vulnerable than corn to temperatures, which could reach 40 degrees Celsius in some parts of France in the coming days.

According to agricultural agency FranceAgriMer, soft wheat and corn crops in France worsened slightly last week, while winter barley harvesting began in anticipation of the heatwave.

November corn on the Euronext exchange rose 0.9% to €214.00 per tonne, setting a new two-week high.

In Germany, heavy rainfall on Friday in northern and eastern grain belts should help wheat withstand high temperatures, a German trader reported.

As in France, hot and dry weather accelerated barley ripening, and harvesting is now beginning in southern and central Germany.

Russian wheat with 11.5% protein content, delivered in July, was the cheapest export, priced at approximately $231-$233 per tonne free on board. Ukrainian and Romanian wheat were approximately $3-$4 more expensive than Russian wheat, while French wheat was $6-$8 cheaper.

Two buyers each requested 25,000 tons of Black Sea feed wheat for August shipment: one from Italy asked about $250 per ton (cost and freight), the other from Tunisia about $255 per ton (cost and freight).

In June, Germany exported wheat to the market, including 35,000 tons to Angola, 30,000 tons to Cameroon, and 30,000 tons to Spain.

Tags: EU, prices, wheat