'Nervousness' about harvest hitting EU wheat prices
Euronext wheat fell for a second straight session, easing from last week’s one-month high as investors waited to see the extent of weather damage to harvests in France and elsewhere in Europe.
A firm euro and a drop in Chicago helped push Euronext prices lower, although nervousness about the harvest was putting a floor under the market.
December milling wheat, the most active position on Paris-based Euronext, slipped 1.50 euros, or 0.8 percent, at 186.75 euros ($219.30) a tonne.
In France, traders were trying to compare initial harvest reports against an unexpectedly low crop forecast from Strategie Grains analysts that shook up the market 10 days ago.
“The market is very much on hold. It is really hard to put a volume on the harvest given how mixed early results are both between different regions and even between fields on the same farm,” a French cash broker said.
There was a growing consensus that heavy rain earlier in the season and a recent heatwave have hurt crops in France, but production estimates were varying widely.
Brokers said there were expectations that crops in heavy soils, which traditionally produce high yields, may have suffered more from torrential rain, while shallow soils that retain less water may give better results.
In exports, the European Commission reported European Union soft wheat exports of 209,000 tonnes for July 1-8, the first reporting week of the 2018/19 July-June season.