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.
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