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Adds closing prices after USDA report
PARIS, Dec 9 (Reuters) – Euronext wheat fell on Friday to approach a nine-month low as cheaper Black Sea supplies continued to curb prices.
Widely followed world crop forecasts from the U.S. Department of Agriculture (USDA) released near the end of the session underscored Black Sea competition, with increased projections of Russian and Ukrainian exports. WASDE13
Benchmark March milling wheat BL2H3 on the Paris-based Euronext settled down 1.5% at 302.75 euros ($318.95) a tonne.
It earlier fell to 301.25 euros, close to Tuesday’s low of 299.75 euros that was a weakest second-month price BL2c2 since Feb. 25, although dealers said 300 euros remained a strong support floor.
Friday’s lightly traded session was also marked by adjustments before Monday’s expiry of December futures BL2Z2. The front-month contract settled 1.7% lower at 302.75 euros.
Chicago wheat Wv1 also fell. GRA/
News that Egypt had bought 260,000 tonnes of Russian wheat via private talks on Thursday kept attention on Black Sea supplies.
“The price weakness seen since October has been driven by a better-than-expected production outcome from the Northern Hemisphere harvest, especially from Russia,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
However, Euronext remained underpinned by previous export sales for European Union wheat, including large French sales to China that are expected to drive a busy year-end port loading programme. GRAIN/SHP/FR
Cold weather in Europe was being monitored, although snow cover in northern regions and the absence of deep frosts were seen limiting risks of crop damage.
In France, 97% of soft wheat was in good or excellent condition in the week to Dec. 5, farm office FranceAgriMer said in its last weekly update before the winter dormancy period.
($1 = 0.9492 euros)
(Reporting by Gus Trompiz; Editing by Crispian Balmer Editing by Louise Heavens)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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