EU wheat prices fall to four-month low

Published Aug 15, 2024

Tridge summary

Euronext wheat prices have been falling for three consecutive days, reaching a four-month low due to the attraction of cheaper Black Sea supplies, despite disappointing harvests in western Europe, especially in France. The decline is attributed to adjustments ahead of options expiry and the narrowing export surplus. France is struggling to find overseas demand for its wheat, which has mixed quality, potentially forcing suppliers to sell at lower prices. The slow start to the EU wheat export season and early imports of wheat and corn from Ukraine are also contributing to the bearish sentiment. Direct talks between Egypt and suppliers are being monitored, with Black Sea origins, including Russian wheat, being a focal point as Egypt aims to increase its Black Sea wheat purchases.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Euronext wheat fell for a third straight day on Wednesday to its lowest in four months, traders said, as competition from cheaper Black Sea supplies outweighed disappointing harvests in western Europe. Euronext December wheat futures fell 1.3% to 219.50 euros ($241.85) a tonne. The contract had earlier fallen to its lowest since late March at 219.25 euros, breaking support at 220 euros. September futures fell further, closing 2.1% below 206.25 euros, after also hitting their lowest since March at 205.50 euros. The front-month position was marked by adjustments ahead of the expiry of options on the contract on Thursday. In France, where farmers are harvesting their smallest crop since the 1980s after months of heavy rain, wheat quality has been mixed, especially on a weight basis, agricultural agency FranceAgriMer said on Wednesday. Despite the narrowing export surplus, France still needs to find overseas demand, traders said, and uneven quality could force suppliers to sell for ...
Source: Oilworld
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