Wednesday, 01 April 2015 03:04
PARIS: European wheat futures tracked US grain markets lower on Tuesday after they were hit by the release of a US government report perceived as bearish for corn.
US farmers were seen cutting corn plantings by less than expected in 2015 even as supplies ballooned to the highest since 1987, US government data showed on Tuesday.
The USDA also pegged corn stocks as of March 1 at 7.745 billion bushels, the second highest ever for that time of year and 136 million bushels above the average of market forecasts.
Corn futures on the Chicago Board of Trade tumbled more than 3 percent after the closely watched report was released and wheat followed, on both US and European markets.
Euronext May milling wheat, on the main No. 2 contract, closed 2 percent lower at 187.50 euros a tonne.
“We are falling in sympathy with corn. The report is neutral for wheat, both for plantings and stocks,” one trader said.
German cash wheat premiums in Hamburg were boosted by the euro’s weakness in thin morning trade ahead of the USDA report.
Standard wheat with 12 percent protein content for delivery in Hamburg in April was offered for sale at 1 euro over the Paris May contract against level Paris on Monday. Buyers were offering level Paris.
Copyright Reuters, 2015
