EU wheat extends slide to six-week low
WEAT•Euronext December wheat fell 1.5% to €233.25 a metric ton, after touching €231.75, its lowest since August 13. Traders cited Black Sea de-escalation hopes, weak trade progress between the United States and China, and adjustments to disrupted Russian and Ukrainian exports.
1. Wheat futures fall
Paris-based Euronext wheat declined for a fourth straight session on Monday. The benchmark December contract was down 1.5% at €233.25 a metric ton by 1536 GMT, after reaching €231.75, its lowest level since August 13. Chicago wheat fell about 2%.
2. Trade and supply pressures
The market was pressured by hopes of de-escalation in the Black Sea region and disappointment with the outcome of last week's US-China summit, where traders saw no fresh Chinese purchases of US crops. Wheat had reached multi-year highs in early September as Russia's war with Ukraine disrupted Black Sea trade, but traders said the market was adjusting to export disruptions. Cautious importers and alternative supplies also encouraged selling.
3. Tender prices decline
Pakistan's tender to buy 185,000 tons of wheat closed with the lowest offer at $339.36 a ton cost and freight, below the $348.83 a ton it paid earlier this month for 365,000 tons. Russian export prices fell last week as estimates for September shipments were revised upward, with analysts citing more activity at Baltic ports. In France, port stocks remained hefty, while rain eased drought concerns ahead of wheat planting.
