PARIS: Euronext wheat was little changed on Tuesday as traders analysed weather prospects in the run-up to summer harvesting while awaiting impetus from US government acreage report.
September milling wheat on the Paris-based Euronext was unchanged on the day at 203.00 euros ($241.65) a tonne at 1611 GMT.
The front-month contract was holding above Friday’s two-month low of 200.75 euros.
Grain markets have been weighing up improved weather conditions for some US crop belts against persistent dryness in northerly zones.
The release of the US Department of Agriculture’s widely followed US acreage report on Wednesday was also creating a cautious mood, traders said.
Favourable winter-wheat harvest prospects across Europe and the Black Sea region, including in top wheat exporter Russia, have curbed prices this month.
Frequent showers in France were starting to raise doubts about harvest prospects, with drier, warmer weather forecast from next week seen as important for averting late damage.
“Wheat crops are not yet ripe so it’s not yet dangerous but everyone would like the weather to clear up,” a French trader said.
More advanced winter barley crops are being monitored for quality loss after initial harvesting was interrupted by rain.
In Germany, widespread rain was seen as positive for crops after recent high temperatures.
“Overall Germany’s wheat is looking in good condition but there are fears wheat yields in areas with light soils could have suffered damage from the heat,” one German trader said.
“Rain this week will be welcome as more moisture is needed before the harvest starts in late July.”
Trader estimates are still that Germany’s 2021 wheat crop will be up about 1 million tonnes on the year to about 23 million tonnes.
“To put in perspective, damage to crops in areas of light soils probably means the crop will not reach record yields this summer, but perhaps the best in about six years,” the trader added.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 1.5 euros under Paris December. Buyers were seeking 2.5 euros under Paris.—Reuters
