EU wheat pushed down by falling US prices, harvest news awaited
European wheat futures in Paris fell for a third consecutive session on Tuesday, pressured by a sharp fall in U.S. futures and a cautious mood in Europe as traders awaited news on harvest progress to bring clarity to widely differing crop forecasts.
December milling wheat, the most active position on Paris-based Euronext, was down €3.25, or 1.7pc, at €183.50 ($215.26) a tonne by 16.14 GMT. Late in the session it hit a one-week low of €183.25.
"The market is seeing a pause while waiting to have a clearer picture of the harvests in France and Russia," one futures dealer said.
Euronext, which had climbed to a one-month high at €190 last week, remained underpinned by uncertainty over the extent of weather damage to crops across Europe and the Black Sea region.
In France, the farm ministry's first forecast for this year's soft wheat crop pegged production at 36.1 million tonnes, down from 36.6 million in 2017 but well above a 33.2 million estimate from Strategie Grains analysts that shocked the market 10 days ago.
Traders said crop estimates may start to converge in the second half of July once harvesting is well advanced.
A clean sweep for Russian wheat in an import tender held by Egypt on Tuesday also underlined the competitive disadvantage of French wheat. But some traders said healthy demand from Algeria and European Union countries would provide sufficient early season exports for France.
Chicago wheat slid more than 3pc, with favourable conditions for corn and spring wheat encouraging selling.