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Paris wheat falls after rally

Paris wheat falls after rally

reuters.com · 04/29/2022 10:45
Paris wheat falls after rally

- Euronext wheat fell on Friday as a bounce in the euro and weakness in U.S. futures encouraged some selling after a rally to contract highs this week.

New-crop December BL2Z2 on Paris-based Euronext was down 1.1% at 374.75 euros a tonne by 1433 GMT.

It earlier extended gains to a fresh life-of-contract peak at 382.25 euros.

The euro regained some ground after tumbling to a five-year low against the dollar this week. FRX/

Chicago wheat dropped as forecasts pointed to some rain in the parched southern U.S. Plains next week while U.S. wheat exports remained sluggish despite disruption to Ukrainian shipments. GRA/

Euronext again saw technical adjustments on Friday as participants exited positions on May futures BL2K2 as the front-month contract entered its pre-expiry period, dealers said.

May futures were down 2.2% at 407.25 euros, falling back from a contract high of 427.75 euros on Thursday.

The European Commission on Friday maintained its forecast of record 2022/23 European Union soft wheat exports at 40 million tonnes due to limited Ukrainian supplies.

It cut its outlook for this year's EU wheat harvest but still increased stocks for next season as it revised up supplies expected at the end of 2021/22. nL2N2WR0O4

Traders were assessing residual Ukrainian grain exports via neighbouring EU countries.

A vessel with around 70,000 tonnes of Ukrainian maize finished loading on Thursday at Romania's Constanta port, a cargo that shipping data showed was bound for Cartagena in Spain. nL2N2WR08R

In France, 91% of soft wheat crops were rated good or excellent in the week to April 25, unchanged from the previous week. nP6N2UX01O

However, low water reserves in some regions after a dry end to winter were seen as a risk for the rest of the growing season.

The French government on Friday announced an extra 100 million euros in funding for water agencies to mitigate potential drought, noting the country's weather office's main scenario suggesting a drier and warmer than normal spring.

In rapeseed, August futures COMQ2 fell 0.4% to 874.00 euros a tonne, easing further from a contract high at 891.00 euros on Wednesday, when oilseed markets were rattled by Indonesia's widened export embargo on palm oil.

May rapeseed COMK2 was up 2.4% at 1,050.00 euros in erratic trading before its expiry at the end of the session.

(Reporting by Gus Trompiz; Editing by Amy Caren Daniel)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))