EU wheat slips to lowest since April as supply pressure persists
European wheat futures fell to their lowest since April, settling at 220.00 euros ($239.84) per metric ton, due to ample global supply and a bigger-than-expected US crop. Chicago wheat also fell to its lowest since April. Russian wheat prices were at $220-$221 a ton FOB, while Ukrainian prices approached $200 a ton FOB. Swedish wheat crop forecasts are around 2.9 million tons, but low Black Sea prices reduce export prospects. Exporters are offering Algeria-quality wheat in Swedish ports at 12 euros under Euronext December.
PARIS, July 12 (Reuters) -European wheat futures fell on Friday to their lowest since April, as widely followed U.S. government forecasts underscored ample global supply including a bigger than expected U.S. crop.
September wheat BL2U4 on Euronext settled 1.5% down at 220.00 euros ($239.84) per metric ton.
The contract fell to 218.25 euros, its lowest since April 22, just after the U.S. Department of Agriculture’s (USDA) monthly world report, but like earlier this week held the 220 euro chart support level at the close.
Chicago wheat Wv1 also fell to its lowest since April, with the USDA increasing its estimates of U.S. wheat production and stocks this season by more than anticipated. GRA/
Prices have been under pressure this month as warm, dry weather has helped harvesting advance in U.S. and Russian crop belts. That has outweighed poor prospects in France, where heavy rain is expected to push production down to one of its lowest levels in decades.
“Market attention remains on very cheap Russian wheat and low Ukrainian prices which are approaching the $200 a ton FOB level,” one German trader said.
“Mostly hot, dry weather is forecast in south Russia next week which would be positive for harvest progress.”
Russian 12.5% protein wheat for August Black Sea shipment was at $220-$221 a ton FOB against around $216-221 on Monday. Russian 11.5% protein was around $211-$213 a ton FOB and Ukrainian 11.5% $199 to $209 a ton FOB.
In Sweden, used to supplement Baltic region export shipments, initial barley harvesting is starting after rain delays.
Trade forecasts of Sweden’s wheat crop are around 2.9 million tons from 2.5 million last year.
“Swedish winter grains are looking good but low Black Sea prices are reducing export prospects,” a Swedish trader said. “Exporters are talking around 12 euros under Euronext December BL2Z4 for Algeria-quality wheat in Swedish ports but selling willingness is very limited.”
Source Link : https://www.xm.com/research/markets/allNews/reuters/eu-wheat-slips-to-lowest-since-april-as-supply-pressure-persists-53879796
