July 27, 2013
Wheat prices in western Europe extended their prolonged slide on Thursday, with contract lows set in Paris futures, as generally favourable weather for grain crops in the Northern Hemisphere kept markets on the defensive. Dealers noted, however, that a mood of caution before harvesting gets into full swing in western Europe as well as a reduced forecast for Russia’s wheat crop and brisk export demand were all helping to put a floor under the market.
November wheat in Paris was down 1.00 euro or 0.5 percent at a contract low of 189.25 euros a tonne at 1234 GMT. “There’s no real acceleration in the market fall. The buyers are there below 190 euros,” one futures dealer said. Dealers in France are still awaiting firmer indications on the ongoing wheat harvest, which has now reached major grain belts in the northern half of the country, following mixed quality reports from earlier cuttings on the west coast. Violent storms in France since Tuesday are expected to have slowed harvest progress. There were also quality concerns in Germany.
“The sudden change from exceptionally cool to exceptionally hot and sunny weather is creating worry that wheat a couple of weeks behind its normal development will be pushed to ripeness too quickly,” one German trader said. “This could mean some regional quality problems but overall it must be stressed Germany is facing a good harvest in tonnage terms,” the trader added. Germany’s wheat harvest is starting in isolated areas in the south and is expected to gather pace in southern regions next week. Prices in Britain were also lower despite expectations that the wheat harvest will be the smallest in more than a decade after difficult planting conditions last autumn led many farmers to switch to spring barley. Courtesy:Reuters
Published in ZaraiMedia.com