EU wheat lower, and the heat disappears the traders to assess yield losses

  • EU wheat lower, and the heat disappears the traders to assess yield losses
    FarmIreland.t. E.
    European wheat futures rose on Wednesday as the lower end of the heat offered help parched crops, while traders were also looking ahead to widely used forecasts of U.S. government grain at the end of this week.
    https://www.independent.ie/business/farming/tillage/grain-prices/eu-wheat-lower-as-heatwave-fades-traders-assess-crop-losses-37199251.html
    https://www.independent.ie/incoming/article37179352.ece/a56ef/AUTOCROP/h342/2018-07-20T152015Z_1528470162_RC14F2FB4A00_RTRMADP_3_EUROPE-WHEAT-HARVEST.JPG

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European wheat futures rose on Wednesday as the lower end of the heat offered help parched crops, while traders were also looking ahead to widely used forecasts of U.S. government grain at the end of this week.

Prices remained within sight of last week’s 5-1/2 year high as the crop forecasts continue to indicate severe weather damage, particularly in Northern Europe, which may delay the supply of wheat and other basic grains.

The benchmark Dec milling wheat on euronext Paris, settled down 1.25 euros, or 0.6%, i.e. less than 215.25 euros ($249.65) per tonne, a break below last week’s 5-1/2 year high in 219.25 euros on the rolling chart.

Chicago wheat found direction in hesitant trade as investors shifted their attention to the monthly report on Friday, the global harvest from the Department of agriculture.

The temperature in France was about 10 Celsius lower than at the height of the heat on Tuesday, and traders said the rain forecast for the week ahead can help developing corn and to reduce the fear of grain deliveries after a disappointing wheat harvest.

In Germany, farmers ‘ cooperatives Association DRV said that the grain harvest in 2018 will be the lowest in 24 years, and not enough to meet domestic needs.

However, he pegged the winter wheat crop at 19.2 million tonnes, higher than the 18 million tons forecast for the agriculture Union DBV last week.

“The new forecast of the DRV pointed out serious problems, but in fact he was much more optimistic than the Union’s agriculture,” one German trader said. “RTD has also shown that the imported goods will be in demand, especially in the sector of feed.”

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Purchase German imports of feed wheat has already started, about 800,000 tons bought from countries of the European Union in the Black sea region this summer, to ship in December, traders said.

Standard new crop wheat with 12 percent protein with a September delivery in Hamburg was offered for sale unchanged at 5 euros over Paris November.

Feed wheat in Germany, the South Oldenburg market in September-December were offered for sale over milling wheat at a price of about 229 € per tonne, with buyers looking for 228 euros.

High prices in France are also the leading producers of animal feed in Brittany to consider the import of feed wheat from the Black sea countries of the EU like Romania and Bulgaria, the French traders say.

Weekly data from the exchange euronext showed that financial investors slightly increased their net long positions in the exchange futures milling wheat options in the week to Aug. 3.

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