IKAR in Mass and Industry Media

European wheat futures hit six weeks low

Reuters

HAMBURG: European wheat futures hit six-week lows on Monday as expectations for a large Russian wheat harvest underscored ample global supplies.

Front-month September milling wheat on the Paris-based Euronext exchange was down 1.0 euro, or 0.5%, at 177.0 euros ($208.24) a tonne at 1520 GMT, its lowest since end-June.

An increased estimate of Russia's crop by consultancy IKAR focused attention on large global supplies.

"In this context and given technical weakness, Euronext could remain under pressure," a dealer said.

A weaker euro and signs of some export demand for the much smaller French crop this year gave some support.

Sunshine throughout Germany allowed rapid wheat harvest progress over the weekend.

"I think we could see Germany's wheat harvest just about finished this week with mostly dry weather expected," one German trader said.

The farming association in the northern export region of Lower Saxony said wheat harvesting in the region was complete apart from isolated fields.

German 12% protein wheat for September onwards delivery in Hamburg was offered for sale at an unchanged 1 euro under the Paris December contact.

In Poland, fine harvest weather also allowed fast harvesting.

"Hot and dry weather enabled good harvest progress in the whole country and 40% or even 50% of wheat is harvested now," one Polish trader said.

Polish grain prices dropped slightly in the past week due to slow export demand and increasing harvest pressure.

"Demand for grain is really slow," the trader said. "Currently I know of only one large vessel loading wheat in Poland which is bound for Cuba but some small coasters are expected to load wheat for the inter-EU market."

Exporters cut purchase offers by 20 zloty on the week for 12.5% protein wheat to 745 zloty a tonne (169.3 euros) for delivery to port silo in August.

13.08.20

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