EU wheat down on improving US weather, rapeseed drops – Markets

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PARIS: European wheat fell on Monday as traders were reassured by welcome rains in the United States, while rapeseed futures fell on better prospects for next season’s oilseed crops and a drop in crude oil prices.

Most milling wheat futures on Paris-based Euronext were down 0.3% at 4:10 p.m. GMT at 378.75 euros ($398.45) a tonne.

In Chicago, the most-traded wheat also fell 0.3% to $10.52-3/4 a bushel.

“There were concerns about the American plains. Now that there have been rains, it is calming down,” said a trader.

Wheat for the first month of May, the last milling wheat contract for the current campaign on Euronext, rose 0.6% to 403.25 euros per tonne in technical adjustments before its expiry on May 10. It had reached a new historic high of 427.75 euros. a ton last week.

Ukraine could lose tens of millions of tons of grain due to Russia’s control over shipping in the Black Sea, Ukrainian President Volodymyr Zelenskiy said on Monday.

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

Rapeseed futures prices fell more than 5% as the entire oilseed complex came under pressure from improving U.S. weather, which benefited soybeans and a larger seed crop of sunflower expected in Europe.

Concerns over economic growth, particularly in China where widespread shutdowns due to COVID-19 have disrupted production and supply chains, and falling crude oil prices have also weighed on the oilseed complex.

Strategie Grains has raised its forecast for this year’s sunflower crop in the European Union to account for an increase in acreage, with farmers using an EU permit to use set-aside land to offset potential supply shortages in the Black Sea.

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