Reuters
2022.06.22 00:07

EU wheat, rapeseed slide with U.S. as harvest, demand weigh

PARIS, June 21 (Reuters) - Euronext wheat fell sharply on Tuesday in step with Chicago futures as hot weather spurred early harvesting in U.S. and French growing belts and economic worries continued to hang over the market, dealers said.

PARIS, June 21 (Reuters) - Euronext wheat fell sharply on Tuesday in step with Chicago futures as hot weather spurred early harvesting in U.S. and French growing belts and economic worries continued to hang over the market, dealers said.

Rapeseed slid for a second day to a four-month low as an early start to the French harvest added to pressure from weaker vegetable oil prices and uncertainty over biofuel demand.

September milling wheat (BL2U2) on Paris-based Euronext was down 3% at 376.50 euros ($397.09) a tonne by 1553 GMT.

It earlier fell to 375.50 euros, its lowest since June 3, extending a pullback from Friday’s peak of 400.75 euros.

Chicago wheat (Wv1) , which resumed trading after a holiday closure on Monday, fell steeply as winter wheat harvest progress during hot weather in the past week encouraged selling. (GRA/)

A pullback in U.S. corn (Cv1) from a one-month high, as forecasts pointed to cooler weather for the rest of the month, also pressured wheat.

In France, traders said harvesting of soft wheat - the country’s main cereal crop - was under way in some southern zones after last week’s heatwave that accelerated the winter barley harvest.

“Initial harvest work is taking place very early,” a dealer said of the French wheat crop.

Early reports suggested some disappointing yields after spring drought but traders were waiting for harvesting to move further north to get a clearer picture of the crop.

A further upgrade to consultancy SovEcon’s forecast of Russia’s wheat crop, which it expects at a record level, and reports that Turkish and Russian officials will meet again to discuss terms of a grain corridor from Ukraine’s Odesa port also curbed prices.

However, traders and analysts expected the price fall to be shortlived given uncertainty over drought impact on U.S. and European crops, war disruption to Ukraine’s exports, and signs of renewed demand from importers.

Algeria was thought to have started buying wheat in a tender on Tuesday, paying an estimated $445 a tonne including shipping, while Tunisia will seek wheat in a tender on Wednesday, according to traders. (GRA/TEND)

In rapeseed, August futures (COMQ2) were down 2.6% at 720.50 euros a tonne, after earlier hitting a lowest front-month price

(COMc1) since Feb. 21.

Rapeseed harvesting was also off to an early start in France, while worries about an economic downturn and policy moves to curb use of crop-based biofuel continued to weigh on rapeseed markets, traders said. ($1 = 0.9481 euros)

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