EU wheat eases to three-week low

Euronext wheat prices have dropped to a three-week low due to increased export competition and adjustments in trader positions ahead of upcoming U.S. government crop estimates. Despite the euro's weakness, the drop in prices was moderated as market participants await the USDA's crop reports. The decline is also attributed to smaller U.S. export sales and a rise in the dollar following better-than-expected jobs data. The euro's low against the dollar in Western Europe also failed to lift export moods. Additionally, concerns about potential increased exports from Russia and competition from cheaper Black Sea supplies, especially Romanian wheat, are adding to the challenges for French exporters, who face a significant drop in cereal export volumes due to a poor local harvest.

Euronext wheat edged down on Friday to a three-week low as export competition hung over the market, despite further weakness in the euro, and as traders adjusted positions before closely-followed U.S. government crop estimates. Benchmark March milling wheat (BL2H5) on Paris-based Euronext was down 0.1% at 229.00 euros ($234.27) per metric ton by 1630 GMT. The contract earlier reached its lowest since Dec. 20 at 228.00 euros but found chart support around that level. Chicago wheat also extended losses to approach a four-month low, pressured by smaller than anticipated weekly U.S. export sales and a rise in the dollar after monthly jobs data exceeded expectations. However, price moves were moderate as participants awaited a series of crop reports from the U.S. Department of Agriculture later on Friday that will give a gauge of world and U.S. grain supply. In Western Europe, the euro’s slide to a new two-year low against the dollar failed to lift export gloom. “Black Sea prices are ...