EU wheat prices fall as Egypt opts for Russian supplies

European wheat futures fell on Tuesday to the lowest levels in nearly three weeks as a firm euro exacerbated an already difficult export outlook amid stiff competition from the Black Sea region.
Concerns about export prospects were reinforced when Egypt’s state buyer GASC said on Tuesday it had bought 170,000 tonnes of Russian wheat in an international purchasing tender.
December milling wheat on Paris-based Euronext was down 1.00 euro, or 0.6 percent, at 163.00 euros ($192.50) a tonne by 1630 GMT, its lowest level since Sept. 20.
“Russian wheat’s supremacy is continuing and the weather alerts in the southern hemisphere are not enough,” a Euronext trader said.
In its first forecast for the 2017/18 crop, food supply and statistics agency Conab estimated Brazilian grain production at between 224.1 million tonnes and 228.2 million tonnes, compared with 238.5 million tonnes in the prior cycle.
A rise in the euro to near $1.18 added to the export gloom, dampening hopes of a competitive boost after last week’s drop in the euro to a 1-1/2 month low against the dollar.
“The euro remains stubbornly high and at levels which are punishing new export sales,” one German trader said. “The poor quality of Germany’s crop this summer is also cutting export volumes.”