France: Paris wheat falls to 5-month low

Published 2024년 8월 20일

Tridge summary

Euronext wheat prices have dropped to a five-month low due to the euro's strength against the dollar, which is negatively impacting export competitiveness amidst cheaper Black Sea wheat. The weak export outlook, coupled with poor harvests in France and Germany, has led to a 1.3% decrease in December wheat futures. The situation is further worsened by falling prices in Russia, weak demand due to Egypt's failed import tender, and tight exports from France, raising concerns about demand and maintaining the 200 euros low.

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Original content

Euronext wheat prices fell to a fresh five-month low on Monday as the euro’s rise against the dollar highlighted the difficulties of exporting western European wheat amid cheaper supplies from the Black Sea. The weak export outlook has once again distracted attention from poor harvests in France and Germany. Wheat futures for December delivery, the most actively traded contract on the Paris-based Euronext exchange, fell 1.3% to 216.00 euros ($239.09) a tonne. The contract had earlier fallen to 215.50 euros, its lowest since March 20 and just below its previous five-month low of late last week, although it found support at 215-216 euros. September futures for delivery earlier in the month closed down 1.3% at 202.50 euros, approaching last week’s five-month low of 201.00 euros but holding the 200 euros low again. EUR/USD hit its highest level against the dollar this year, topping $1.10, with the greenback further weakened by expectations of a U.S. interest rate cut. “The euro could ...

Source: Oilworld