PARIS European wheat closed lower on Friday after the US government estimated corn plantings far above expectations, sending corn plunging, with wheat following through.
Front month September milling wheat on Paris-based Euronext closed down 1.4% at 224.00 euros a metric ton.
By the same time the most-active corn contract on the Chicago Board of Trade (CBOT) was down 4% at $4.05-3/4 a bushel after touching a contract low of $3.99-1/2 a bushel. Wheat was down 1.3% at $5.72 a bushel.
The US Department of Agriculture on Friday raised its quarterly estimate for corn plantings to 91.5 million acres, while analysts expected 90.353 million acres and up from a March estimate of 90.036 million acres.
“The USDA report was bearish for sure,” a French trader said. “Corn is the main driver, pulling wheat in its wake.”
In Europe, winter barley and rapeseed harvesting kicked off in some parts of France, the European Union’s largest grain producer, with farmers reporting low yields in first cuttings.
FranceAgriMer lowered its crop ratings for most winter crops on Friday with 60% of French soft wheat rated as in good or excellent condition by June 24, down from 62% a week earlier and from 81% a year ago.
The rating was the lowest for this time of the year since 2020 when French wheat crops were also affected by heavy rain during planting, FranceAgriMer data showed.
Winter barley ratings lost 1 percentage point to 63% of crops as being in good or excellent condition. Barley is the first crop to be harvested. Fears of disease and high levels of mycotonins for cereals in the fields still worried the farmers.
The European Commission on Thursday raised its forecast for the European Union’s main wheat crop this year to 121.9 million metric tons, up from 120.2 million forecast a month ago, as it anticipated a higher area to be harvested. That would still be a four-year low.
The Commission also lifted its forecasts of EU wheat exports for the current and the next season.
Source: Brecorder
