REFILE-EU wheat falls as US rain, Canada area outweigh Europe weather risks

Fri Apr 21, 2017 7:43pm GMT
 

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PARIS, April 21 (Reuters) - Euronext wheat futures fell on Friday as crop-friendly rain in the United States, a bigger than expected area estimate in Canada and chart-based trading outweighed concerns about adverse weather in Europe.

Front-month milling wheat May, the last delivery position for the 2016 harvest on Euronext, settled 0.75 euro or 0.5 percent lower at 162.50 euros a tonne, close to a contract low of 162.25 euros set earlier this month.

New-crop September ended 2.25 euros lower at 168.00 euros a tonne, after touching a two-week low of 167.50 euros.

"Canada weighed a bit with more wheat there than thought but it's mainly the U.S. weather that is pressuring prices," one futures dealer said.

"It's very, very dry in France and it's been very cold in Europe this week. But it's still too early to tell for the harvest," he said.

Euronext futures were also affected by spread trading with Chicago after a sharper fall on the U.S. market on Thursday, as well as adjustments between front-month and new-crop positions, traders said.

Chicago wheat hit a contract low as favourable rainfall for U.S. crops and a smaller than expected decline in Canadian wheat sowings in an official estimate kept the focus on ample supply prospects.

Traders in Europe continued to monitor parched conditions in France, where winter cereals were seen as under threat if substantial rainfall does not arrive by early May.   Continued...

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