IKAR in Mass and Industry Media

EU wheat claws off one-month low as harvest weather weighed

Reuters

Euronext wheat edged higher on Friday, finding chart support after hitting its lowest in over a month, as traders weighed harvest prospects across Europe that have improved after recent rainfall.

Front-month September milling wheat on the Paris-based Euronext exchange was up 0.25 euro by 1401 GMT at 182.75 euros ($206.51) a tonne.

It earlier eased to 182.00 euros, its weakest level since May 4, but found firm technical support at that level.

Chicago wheat also steadied after falling earlier to a three-week low.

A U.S. government forecast on Thursday of record world wheat stocks added to supply pressure on wheat prices already curbed by an advancing U.S. harvest and rain relief in Europe.

Consultancies SovEcon and IKAR this week raised their forecasts for this year’s Russian wheat harvest, while in France data from farm office FranceAgriMer showed wheat ratings were stable for a second week in a row last week.

But analysts noted that stocks remained relatively low in major exporting countries and that uncertainty remained over northern hemisphere harvests.

More showers expected in France and Germany at the end of the week could further alleviate drought, although some yield damage was seen as irretrievable.

“Every day that rain comes there is more optimism that we will get a decent crop this summer although some harvest forecasts could be cut a bit,” one trader said of German crops.

Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale unchanged around 1.0 euro under the Paris December contract.

Export demand for the 2020/21 season that starts in July was light but loading activity remained steady in France and Germany for the end of the 2019/20 season.

In Germany, ships were due next week to load 25,000 tonnes of German wheat for Nigeria and 30,000 tonnes for Guinea, after vessels loaded another 30,000 tonnes this week for Nigeria and 35,000 tonnes for Kenya.

15.06.20

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