PARIS: Euronext wheat fell to a new three-month low on Thursday after the US government increased its estimate of wheat and corn acreage in widely followed data.
That added to earlier pressure from forecasts pointing to moderate weather in the US Midwest and renewed economic worries that hit oil and equity markets.
September milling wheat on Paris-based Euronext settled down 2.3% at 350.25 euros ($367.17) a tonne.
The contract in late trading fell to as low as 347.50 euros, a weakest front-month price since March 29 and below a previous three-month low set on Monday.
CBOT wheat and corn extended an earlier fall to lose around 3% as the US Department of Agriculture (USDA)raised its estimates for 2022 acreage of the crops.
However, dealers reported buying interest from industrial users in Europe and said export demand remained brisk after a recent series of tenders by importers.
Egypt bought 815,000 tonnes on Wednesday, consisting mostly of French and Romanian wheat.
“With the war in Ukraine showing no signs of coming to a rapid end it looks like the EU will be able to sell just about everything it wants in export markets,” one German trader said.
“There is talk of large advanced export sales of German new crop wheat, especially to Iran.” Sellers of standard 12% protein wheat for September delivery in Hamburg were offering around 18 euros a tonne over the Euronext December contract.
Premiums for summer delivery to France’s west coast port of La Pallice also remained at double-digit levels.
The French market is also awaiting further harvest reports, with yields expected to improve after poor levels in southerly zones.
Germany’s northern export regions are expected to produce a good crop despite recent dry conditions, traders said.