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EU wheat pushed down by weak US markets, good French weather

EU wheat pushed down by weak US markets, good French weather

HAMBURG: European wheat fell in light trading on Tuesday, pushed down by falling US prices, favourable crop weather in France and an Egyptian tender purchase that underlined the competitive edge of Russian wheat.

December milling wheat, the most active position on the Paris-based Euronext, was down 0.25 euros or 0.1 percent at 177.50 euros ($207.14) a tonne at 1522 GMT, after slipping 1.4 percent on Monday.

Chicago wheat extended losses as US harvest progress added to pressure from wider concerns about trade tensions between the United States and China.

Egypt bought 120,000 tonnes of Russian wheat on Tuesday, underlining tough price competition from Black Sea supplies.

Warm, dry weather was helping French farmers advance winter barley harvesting and was also seen as beneficial for ripening wheat crops that had endured torrential rain in the late spring.

“The weather is helping the barley harvest and for wheat it’s curbing pressure from fusarium disease,” one cash broker said.

Traders continued to report average French winter barley yields, while there was also talk of favourable protein readings for malting barley.

Wheat harvesting had got off to a very early start in some French regions in recent days but it was too early to assess results, traders said.

In Germany, cash market premiums in Hamburg were little changed as dealers assessed the impact of recent rain on parched wheat crops in north and east Germany which have suffered from a long period of dryness.

New crop standard bread wheat with 12 percent protein for September delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December.

“Rain late last week and over the weekend could have had a positive impact on some wheat in north and east Germany but probably came too late for barley,” one German trader said. “There could be time for an improvement for wheat but it is too early to say.”

Dryness this summer means damage to wheat in north and east Germany is expected.

But traders stress wheat in south and central Germany is developing positively.

“I think the market is facing up to the fact that Germany’s wheat crop this year could be down about 1 million tonnes on last year,” the trader added. “The big question now is what quality will be harvested.”

“Farmers are unwilling sellers as they are sometimes unsure what volumes they will harvest after the dry weather.”

Copyright Reuters, 2018

Source: Brecorder

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