EU wheat prices lower as crop outlook improves

July 14, 2013

EU wheat
EU wheat

Wheat prices in western Europe were lower on Friday, weighed by a pick-up in producer selling following the prior session’s advance to a two-week high and by an improving outlook for crops in the region, dealers said. November milling wheat on the Paris futures market was down 1.50 euros or 0.75 percent at 197.75 euros ($260) a tonne by 1627 GMT.

The contract reached its highest in more than two weeks on Thursday at 199.50 euros, but dealers said the market lacked sufficient impetus in subdued trading on Friday to test the next resistance zone at 200-201 euros. “A few coops may be selling some futures around 200 euros,” Arnaud Saulais of Starsupply Commodity Brokers said.

Warm, sunny weather also was boosting the outlook for crops in the European Union. “Grain prospects continue to improve as favourable weather seems well established across much of northern Europe. Early reports of harvested crops in the south show yields well above those of last season,” David Sheppard, managing director of UK merchant Gleadell, said in a market note.

Germany will harvest 24.07 million tonnes of wheat of all types in 2013, up 7.5 percent on the year, the giant German Farm Co-operatives Association said on Friday in its latest harvest estimate. This was up slightly from 24.01 million tonnes the association had forecast in its June estimate. “Overall the wheat is developing well, and if we get warm, sunny weather up to the expected harvest start in early August we should have a good harvest this summer,” one trader in Germany said.

Standard new crop milling wheat for September delivery in Hamburg was offered for sale down 1 euro on late Thursday levels at 204 euros a tonne, with buyers at around 203 euros. November feed wheat in London fell 1.00 pound or 0.6 percent to 170.00 pounds ($260) a tonne. The EU should harvest a bigger barley crop this year, supported by a good end to the growing season in top producers France and Germany, a sharp rebound in Spanish yields and an expected UK rise driven by spring barley, analysts said. Courtesy Reuters
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