Source: Ukragroconsult (Ukraine)
European wheat futures rose on Friday after new data showed that the French harvest this summer was affected by repeated rainfall, traders said.
However, gains were limited by low export prices from Black Sea exporters, particularly for Russian wheat, combined with positive news on crops in Russia and Ukraine.
A weak trend in early US wheat futures also weighed on European prices.
September wheat was up 0.3% to 220.50 euros ($239.33) a ton by midday on the Euronext exchange in Paris. On Monday, wheat had hit a two-week high of 227.50 euros on the Euronext exchange on fears that rains could damage crops.
France’s soft wheat ratings fell again to 50 percent in good or excellent condition in the week to July 22, down from 52 percent the previous week, with the crop still well behind average, agriculture agency FranceAgriMer said on Friday.
“There was more bad news on the French harvest today, but export competition from the Black Sea is so strong that not much EU wheat can be sold on export markets,” a German trader said.
Rain has affected harvests in France and Germany this summer, threatening to cause a drop in quality. In Germany, it rained again on Friday and is expected to continue over the weekend, but next week could be drier.
Russian agricultural consultancy Sovecon raised its forecast for the 2024 Russian wheat harvest to 84.7 million tons on Friday, up from a previous forecast of 84.2 million tons. The Ukrainian harvest is also progressing rapidly.
“Prices for Black Sea wheat, especially Russian, Ukrainian and Romanian wheat, are so low and below Western European prices that the Western EU has practically exited the export sector,” said a German trader.
Traders said Russian wheat with 11.5% protein for delivery across the Black Sea in August was at around $210-212 per ton FOB, Ukrainian wheat with 11.5% protein at around $211-215 per ton FOB and Romanian wheat with 11.5% protein at around $218-226 per ton FOB.