Source: Ukragroconsult (Ukraine)
Wheat futures on Euronext fell on Monday under pressure from a stronger euro and economic worries dominating financial markets, although losses in grains were limited by short positions already opened by investors.
Wheat futures for September delivery on Euronext Paris closed down 1.7 percent at 216.00 euros ($236.65) a metric ton.
“There is a perception that we could be in for an economic downturn. The euro is not helping either,” said one trader.
“But funds are already very tight and there is no need for additional funds,” he said.
Prospects for a large crop in Russia continue to dampen fears of a poor harvest in France, which is expected to fall to its lowest level since the 1980s at around 25-26 million tons, traders said.
Traders are awaiting the completion of the French harvest in the main northern belts as heavy rains last week delayed field work and heightened concerns over quality damage.
Traders said rapeseed prices on Euronext fell further as oilseed markets were seen as more sensitive to broader macroeconomic sentiment, and the closure of Canadian futures over the holidays focused selling pressure in Paris.
The November rapeseed contract closed down 4.0% at €453.25, but managed to hold its ground at €450.
The wheat harvest in Germany was repeatedly interrupted by rainfall last week, raising concerns about damage to the quality of the crop, although there is still time for recovery.
“Some southern German regions like Bavaria, which were the first to start harvesting, may have suffered losses due to the rains, but things are looking better in the northern and eastern regions,” said a German trader.
“The situation in Germany is probably not as bad as the rain problems the crop in France had to contend with. There is still plenty of wheat in the German fields and there is growing concern about quality losses.