Paris wheat falls as welcome rain forecast for dry Russian crops

By Thomson Reuters Apr 29, 2024 | 10:40 AM

HAMBURG/PARIS (Reuters) – Euronext wheat fell on Monday as forecasts showing some rain in parched southern Russia eased weather worries that triggered a 9% surge last week.

September wheat, the most active position on Paris-based Euronext, was down 2.2% at 230.00 euros ($246.40) a metric ton at 1527 GMT.

The contract was retreating from Friday’s peak of 235.75 euros, the highest level since Dec. 12, but was still finding chart support at the 230 euro threshold.

“The rally was overdone regarding Russia,” a futures dealer said. “Even if a bit of production potential is lost the crop is still going to be decent.”

“Kansas is more worrying with very little rain in part of the belt there.”

A sharp drop in crop ratings in Kansas, amid dry conditions in the top U.S. wheat-growing state, contributed to last week’s rally and traders are waiting to see latest weekly U.S. crop scores later on Monday.

In Poland, export prices rose strongly in the last week, following strong international markets, short covering and slack selling by farmers.

Export prices for Polish 12.5% protein wheat are around 930 zloty (215.1 euro) a ton for May/June delivery to ports, up about 90 zloty in the past two weeks, traders said.

“There is short covering because a good number of vessels are going to load wheat in Poland in May and June and therefore exporters are paying higher price to get supplies,” one Polish trader said.

“Poland’s weather is stable now after cold snaps in the last 10 days. There is enough moisture in the soil and fields look very promising.”

($1 = 0.9334 euros)

(Reporting by Michael Hogan and Gus Trompiz, editing by David Evans)