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Business Recorder
a day ago
- Business
- Business Recorder
EU wheat stuck near contract lows
PARIS: Euronext wheat prices edged down on Friday to trade near contract lows as further signs of Russian export competition reinforced a bearish mood fuelled this week by improving global supply prospects. September milling wheat, the most active position on Paris-based Euronext, settled at 200.75 euros a metric ton, down 0.6%. It held close to a contract low of 200.25 euros set on Thursday but again remained above the psychological floor of 200 euros. December futures, also used as a benchmark for the 2025 crop, ended down 0.5% at 212.25 euros, near a contract low of 211.25 euros from early May. Russia needs to act swiftly to maintain its position as the world's top wheat exporter, Deputy Prime Minister Dmitry Patrushev said on Friday, acknowledging a sharp slowdown in wheat exports in the current season. Patrushev, who is responsible for agriculture in the government, said Russia will export 44.5 million metric tons of wheat in the 2024-2025 season. That was down sharply from last season but still above some analyst estimates for this season. On Thursday, agricultural consultancy Sovecon raised its forecast for Russia's wheat exports for the 2025-2026 season, citing improved weather conditions for the harvest. An upturn in Russian export activity could further dim Western European prospects after a slow season. 'With only June remaining in the season, a heavy EU wheat end-stock and a large incoming crop are anticipated,' British merchant Frontier Agriculture said in a note. Rain in parched areas of northern Europe in the past week has eased drought concerns. French wheat crop conditions declined in the week to May 26 but less sharply than in the previous week, data from farm office FranceAgriMer showed on Friday. Uncertainty over international trade relations also hung over the market. US President Donald Trump said on Friday that China had violated an agreement with the US to mutually roll back tariffs and trade restrictions for critical minerals. Volumes on Euronext were light, with some participants taking a long weekend after Thursday's Ascension Day holiday in some European countries.
Zawya
3 days ago
- Business
- Zawya
Wheat and corn higher, soybeans stuck near 3-week low
PARIS/SINGAPORE - Chicago wheat and corn edged higher on Friday as the cereal markets consolidated after losses this week linked to favourable U.S. and global harvest prospects. Soybeans ticked lower to hold near Thursday's three-week low, curbed by expectations of ample supplies along with uncertainty over biofuel demand as the U.S. government considers waivers for oil refiners. A firmer dollar kept grain prices in check as grain markets awaited an update on demand from weekly U.S. export sales figures later on Friday. The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.7% to $5.37-3/4 a bushel by 1015 GMT. Corn added 0.5% to $4.49-1/4 a bushel to steady after a one-week low on Thursday. CBOT soybeans inched down 0.1% at $10.50-1/2 a bushel to consolidate above Thursday's low of $10.40. Agricultural consultancy Sovecon on Thursday raised its forecast for Russia's wheat exports for the 2025-2026 season by 1.1 million metric tons to 40.8 million tons, citing improved weather conditions for the harvest. India is likely to produce a record 117.5 million metric tons of wheat in the year ending June 2025, the farm ministry said, above its March forecast of 115.4 million tons. In the U.S., winter wheat conditions are at a five-year high despite an unexpected decline last week, while regular showers have helped most corn and soybean crops get off to a good start to their growing season. With expectations rising for Brazil's upcoming second corn crop, the corn market found little support in large export sales reported on Thursday by the U.S. Department of Agriculture. "Despite exceptional export sales reported by the USDA —amounting to 205,096 tons for the 2024/25 campaign — market support remains absent," Argus Media analysts said in a note. The soybean market was assessing a Reuters report that the White House is considering a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws. Prices at 1015 GMT Last Change Pct Move CBOT wheat 537.75 3.75 0.70 CBOT corn 449.25 2.25 0.50 CBOT soy 1050.50 -1.25 -0.12 Paris wheat 202.00 0.00 0.00 Paris maize 193.00 2.25 1.18 Paris rapeseed 474.50 2.00 0.42 WTI crude oil 61.35 0.41 0.67 Euro/dlr 1.13 0.00 -0.34 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton
Business Recorder
23-05-2025
- Business
- Business Recorder
EU wheat eases further from one-month high
PARIS/HAMBURG: European wheat futures fell for a second session on Friday, moving further from a one-month high as a backdrop of ample supplies and tepid export demand hung over the market. Benchmark September milling wheat on Paris-based Euronext was down 1.1% at 207.00 euros a metric ton by 1528 GMT. On Wednesday, it had climbed to 213.00 euros, its highest since April 17, as it rebounded from a contract low of 201.00 euros last week. Chicago wheat also eased further from a one-month peak, with traders adjusting positions before the U.S. Memorial Day holiday on Monday. Wheat rallied early this week as concerns over adverse weather in Russia and China and an unexpected decline in U.S. wheat ratings triggered short-covering by speculators. But traders played down the risk of significant damage to crops. The International Grains Council on Thursday maintained its 2025-26 wheat crop outlook at 806 million metric tons, while consultancy Sovecon this week raised its 2025 Russian wheat production forecast to 81 million metric tons from 79.8 million tons. In France, crop ratings for soft wheat fell last week, data from farm office FranceAgriMer showed on Friday. Wheat dips again as short-covering rally loses steam But concern over dry conditions in Northern Europe has eased as rain has returned to northerly areas in France and Germany, with more showers forecast in the coming days. In exports, a Reuters report that top wheat exporter Russia has removed a minimum export price recommendation for May and June put attention back on competition from the Black Sea region. The main concern, however, was limited prospects for new demand from importers. 'A problem in the wheat market is the demand side, which is dead,' one German trader said. 'The real test will come with an international tender, as Russian traders will have more freedom to offer lower prices to win demand, but there are currently no tenders in the market,' he said. At the same time, a rise in the rouble to a two-year high against the U.S. dollar on Friday was underpinning Russian export prices, he added.
Zawya
23-05-2025
- Business
- Zawya
Wheat eases as short-covering rally fades
CANBERRA/PARIS - Chicago wheat futures edged lower for a second day on Friday, consolidating below a one-month high as short-covering by investment funds subsided and traders saw generally favourable harvest prospects in the Northern Hemisphere. Corn and soybean futures were little changed, also consolidating after gains this week and ahead of the Memorial Day holiday that will keep U.S. markets closed on Monday. The most active wheat contract on the Chicago Board of Trade (CBOT) was down 0.2% at $5.43-1/4 a bushel by 1022 GMT, moving away from Wednesday's one-month peak of $5.56-1/4. Wheat rallied early this week in a rebound from a near five-year low of $5.06-1/4 hit on May 13, as concerns over adverse weather in Russia and China and an unexpected decline in U.S. wheat ratings triggered short-covering by speculators. But traders are not convinced that crops will suffer significant immediate losses and funds switched back to being net sellers on Thursday, traders said. "CBOT wheat was too cheap. Now it's more fairly priced," said Rabobank analyst Vitor Pistoia in Sydney. However, prices are likely to rise further only if there is a significant and crop-damaging change in weather conditions, he said. The International Grains Council on Thursday maintained its 2025-26 wheat crop outlook at 806 million metric tons, while consultancy Sovecon this week raised its 2025 Russian wheat production forecast to 81 million metric tons from 79.8 million tons. Demand for competitively priced U.S. wheat has helped underpin prices, as illustrated by better-than-expected weekly U.S. wheat export sales data released on Thursday. However, a Reuters report that top wheat exporter Russia has removed a minimum export price recommendation for May and June put attention back on competition from the Black Sea region. CBOT soybeans was flat at $10.67-1/2 a bushel , consolidating below an earlier one-week high. CBOT corn inched down 0.1% to $4.62-1/2 a bushel, after reaching a two-week peak on Thursday. Favourable U.S. crop conditions and large harvests in Brazil were keeping a lid on corn and soybean prices. The IGC raised its forecast for 2025-26 global corn production by 3 million metric tons to 1.277 billion tons. Prices at 1022 GMT Last Change Pct Move CBOT wheat 543.25 -1.25 -0.23 CBOT corn 462.50 -0.50 -0.11 CBOT soy 1067.50 0.00 0.00 Paris wheat 207.25 -2.00 -0.96 Paris maize 206.25 -1.00 -0.48 Paris rapeseed 489.00 -0.25 -0.05 WTI crude oil 61.13 -0.07 -0.11 Euro/dlr 1.14 0.01 0.64 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton Reuters
Zawya
22-05-2025
- Business
- Zawya
Wheat retreats after short-covering rally, corn and soybeans also lower
PARIS/CANBERRA - Chicago wheat fell on Thursday as a short-covering rally that took prices to a one-month peak petered out, with traders seeing limited threats to Northern Hemisphere crops despite adverse weather spells. Corn and soybeans also eased after three-day gains, with a steadier dollar, weaker crude oil and generally favourable crop conditions curbing the markets. The most active wheat contract on the Chicago Board of Trade (CBOT) was down 1.1% at $5.43 a bushel at 1130 GMT, moving back from Wednesday's one-month high of $5.56-1/4. After dropping to a near five-year low of $5.06-1/4 on May 13, concerns over adverse weather in Russia and China and an unexpected decline in U.S. wheat ratings triggered a wave of short-covering in the past week. But traders were sceptical that Chinese or Russian wheat crops have suffered significant damage, while the U.S. remains on track for a large harvest despite disease risks in some areas. Consultant Sovecon raised its 2025 Russian wheat production forecast to 81 million metric tons from 79.8 million tons, though warned that persistent dryness in many regions could still cause crop losses. Benchmark wheat on Euronext also fell back from a one-month top reached on Wednesday. "Wheat rose in a short-covering vacuum. There's not much really to be bullish about in this market," a European trader said. Commodity funds hold a large net short position in CBOT and Euronext wheat, leaving the markets prone to bouts of short-covering. CBOT soybeans were down 0.5% at $10.57-1/4 a bushel after touching a one-week peak on Wednesday. CBOT corn eased 0.7% to $4.58 a bushel after earlier equalling a two-week peak from the previous session. Soybeans had drawn support from flood risks to Argentina's ongoing harvest. But the Buenos Aires Grains Exchange said on Wednesday that dry weather in the coming days will help muddy fields. In Brazil, the second corn crop is estimated at a record 112.9 million metric tons, up 10.5% from the previous season, consultants Agroconsult said on Wednesday. Chicago prices had also been underpinned by a falling dollar since this week amid worries over the U.S. economy, making U.S. crops more attractive to overseas buyers. But the dollar index rose slightly on Thursday. Traders will get an update on international demand from weekly U.S. export sales figures later on Thursday. Prices at 1130 GMT Last Change Pct Move CBOT wheat 543.00 -6.25 -1.14 CBOT corn 458.00 -3.00 -0.65 CBOT soy 1057.25 -5.50 -0.52 Paris wheat 209.00 -3.00 -1.42 Paris maize 202.00 -0.50 -0.25 Paris rapeseed 480.25 -4.75 -0.98 WTI crude oil 60.28 -1.29 -2.10 Euro/dlr 1.13 0.00 -0.19 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton
