Source: Ukragroconsult (Ukraine)
Wheat prices on Euronext fell for a third consecutive day on Wednesday as traders saw a recent rise in futures widening the price gap against cheaper Black Sea exports.
Caution ahead of the Federal Reserve’s expected interest rate policy announcement on Wednesday also contributed to consolidation in grain markets.
Wheat futures for December delivery on Euronext Paris fell 0.3% to 218.50 euros ($243.06) a tonne, down further from Friday’s one-month high of 228.00 euros.
The Paris benchmark had previously rallied in step with Chicago wheat before the US market slipped.
Export prices for Russian wheat were little changed last week, with the 12.5% protein crop mostly offered below $220 per tonne ex-factory, while Russian export volumes are expected to remain high in September, according to estimates from analysts at consultancy Sovecon.
“Wheat futures have risen sharply, but physical prices have not followed suit,” the broker said.
However, concerns about drought in the Black Sea region and the US Midwest, which could affect corn that competes with wheat in animal feed, have provided some support for wheat, he said.
The market will get fresh export price data on Thursday when Tunisia tenders 125,000 tons of soft wheat.
Ample global stocks have diverted attention from rain-induced crop failures in Western Europe, including the lowest harvest in France since the 1980s.
On Wednesday, agricultural agency FranceAgriMer slashed its forecast for French soft wheat exports in 2024/25, which now stands at 61 percent compared to last season.
FranceAgriMer also confirmed the poor results for natural weight, a common indicator of milling quality, in a survey on wheat quality, and the French millers’ association said separately that this will force mills to process more wheat.
The data showed that financial investors have reduced their net short position in Euronext wheat over the past week.