PARIS: Euronext wheat fell sharply on Tuesday in step with Chicago futures to hit a fresh four-month low as wider economic fears outweighed favourable export prospects for European wheat, traders said.
September milling wheat on Paris-based Euronext settled down 3.4% at 331.75 euros ($339.78) a tonne.
The contract earlier fell to 328.75 euros, the weakest front-month price since Feb. 28 and below a previous four-month low touched on Friday.
Chicago wheat, which resumed trading after Monday’s US Independence Day holiday, again fell to levels not seen since before Russia’s invasion of Ukraine on Feb. 24.
A jump in the dollar and losses for oil and share prices weighed on grain markets as investor worries about an economic downturn intensified.
A bigger than expected official estimate of Canadian wheat planting added to pressure on prices.
Euronext wheat had earlier extended Monday’s rebound, as a falling euro added to bright early-season export prospects for European Union.
French and Romanian wheat scored fresh sales to Egypt on Monday, after a large purchase by the importer last week.
The war in Ukraine is expected to boost demand for EU wheat as Ukrainian maritime shipments are disrupted and trade with Russia is clouded by sanctions, despite an expected record Russian harvest.
In Germany, traders again cited unusually large early-season exports sales of at least 1 million tonnes to global markets, including Iran.
“I think Germany is looking competitive in export markets and this will generate even more rapid sales of German new crop wheat following heavy advanced sales in past weeks,” one German trader said.
The EU exported 27.47 million tonnes of soft wheat in the 2021/22 season that ended on June 30, up nearly 7% from the previous season, data published by the EU’s executive showed.