Source: Ukragroconsult (Ukraine)
Wheat prices on Euronext fell for a third straight day on Wednesday as traders saw a recent rise in futures widen the price gap against cheaper Black Sea exports.
Caution ahead of the US Federal Reserve's interest rate policy announcement expected on Wednesday also contributed to consolidation in the grain markets.
Wheat futures for December delivery on Euronext Paris fell 0,3% to 218,50 Euro ($243,06) per Tonne and thus fell further compared to Friday's one-month high of 228,00 euros.
The Paris benchmark had previously moved in step with the Chicago Wheat recovered before the US market declined.
Export prices for Russian wheat were little changed last week, with the 12,5% protein crop mostly offered at below $220 per tonne ex-works, while Russian export volumes are expected to remain high in September, according to estimates by analysts at consultancy Sovecon.
“Wheat futures have risen sharply, but physical prices have not followed suit,” the broker said.
Concerns about drought in the Black Sea region and the Midwest of the USA, which is on Corn which competes with wheat in animal feed, has, however, given wheat some support.
The market will receive new export price data on Thursday when Tunisia will Tonnen Soft wheat advertises.
Abundant global stocks have diverted attention from rain-related crop failures in Western Europe, including the lowest harvest in France since the 1980s.
On Wednesday, the Agriculture Office lowered FranceAgriMer drastically reduced its forecast for French soft wheat exports in 2024/25, which now stands at 61 percent compared to last season.
FranceAgriMer also confirmed poor results in natural weight, a common indicator of milling quality, in a wheat quality survey, and the French Milling Federation said separately that this would force mills to process more wheat.
The data showed that financial investors reduced their net short position in Euronext wheat last week.