EU wheat turns lower after surprise USDA crop report
DBA•European wheat fell after the USDA raised its U.S. corn crop estimates, surprising traders and sending U.S. crop prices lower. December Paris wheat closed down 1.1% at €241.50 a metric ton.
1. Wheat falls after report
European wheat turned lower after the USDA raised its U.S. corn crop estimates, sending prices down and weighing on wheat. December milling wheat on Euronext closed down 1.1% at €241.50 a metric ton.
2. Crop estimates pressure prices
The USDA said U.S. farmers would harvest more corn and soybeans than previously expected, contrary to traders’ expectations for lower production after unfavorable weather. CBOT corn futures fell nearly 6%, reaching the 30-cent daily limit. World wheat ending stocks were forecast at 276.04 million tons, below the trade estimate of 276.63 million.
3. Some support for European grains
A weaker euro, which boosted the competitiveness of European grains on international markets, and concerns about disruptions to Black Sea exports provided some support, traders said.
