PARIS: European wheat prices edged lower following a fall on US markets on Thursday, reversing course after jumping 2.5 percent to a more than one-week high at the open on concerns that Russia could put a lid on exports, traders said.
Benchmark December milling wheat on Paris-based Euronext, was down 0.9 percent by 1620 GMT to 201.50 euros a tonne after hitting 210.00 euros in earlier trade, a price unseen since Aug. 21.
In Chicago the most traded wheat contract was 1.6 euros lower.
The jury is still out on whether Russia and Ukraine could restrict exports after rain during harvesting hurt the quality of crops, with uncertainty leading to great volatility in both the US and European wheat markets this month.
“The European market keeps following Chicago cautiously. Intraday volatility is a sign of nervousness in the markets due to fears of export restrictions in the Black Sea” a Euronext trader said.
Kiev and Moscow have said there is no need to impose restrictions on wheat exports for now, but their agriculture ministries are closely monitoring the activity of the main exporters for the 2018/19 marketing season.
Source: Brecorder
