IKAR in Mass and Industry Media

EU wheat lower as Russia forecasts ease supply concerns

Reuters

PARIS, June 11 (Reuters) - Euronext wheat fell on Thursday to touch a four-week low as increased forecasts for this year’s Russian harvest tempered concern about the effects of a dry spring in Europe.

Weaker Chicago prices, pressured by an advancing U.S. harvest and caution ahead of the U.S. Department of Agriculture’s (USDA) monthly world supply-demand report also weighed on Euronext.

A broad slide in equity and commodity markets following a downbeat economic assessment by the U.S. Federal Reserve also contributed to the subdued trend.

Front-month September milling wheat on the Paris-based Euronext exchange was down 1.75 euro, or 1.0%, by 1528 GMT at 183.25 euros ($208.48) a tonne, its lowest since May 14.

Upward revisions by leading consultancies SovEcon and IKAR to their forecasts for this year’s Russian wheat harvest supported the view that recent rain has benefited crops in the Black Sea region.

For the European Union plus Britain, consultancy Strategie Grains reduced its forecast of this year’s EU soft wheat forecast by 2 million tonnes to 130.9 million.

Rain in France and Germany has nonetheless eased drought in northerly areas.

“Good volumes of rain fell in north Germany on Thursday which was excellent for crops but more is still needed, especially in parts of the east,” one German trader said.

“Rain is again forecast over the weekend so the picture is improving.”

Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale at around 1.0 euro under the Paris December contract. ($1 = 0.8790 euros)

14.06.20

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