EU wheat prices subdued as Russia rumours fade, big US corn crop looms
European wheat futures edged lower on Wednesday, giving up earlier gains, as the absence of Russian export restrictions continued to dampen speculation about supply tensions.
Latest estimates reinforcing expectations for bumper yields in the approaching US corn harvest also weighed on wheat markets.
Benchmark December milling wheat on Paris-based Euronext settled down 0.75 cent, or 0.4pc, at €199.75 ($232.15) a tonne.
Paris prices tracked a drop in Chicago futures, which turned lower during the US session.
However, Euronext held above a one-month low of €198 struck last week, and some traders remained sceptical that Russia would refrain from export limits later in the season given a shrinking surplus in the world’s top wheat supplier.
“Today the market has been in a hesitant mood after fluctuating in reaction to talk of Russian export limits or lack of,” one Euronext broker said.
“There are some still betting on export restrictions sooner or later, and others who think there won’t be any shortfall in wheat supply up to the end of the season.”
After a meeting with exporters on Monday, Russia’s agriculture ministry said it saw no need to impose an export duty or curb grain exports in any other way, triggering losses in European and U.S. futures.