BRUSSELS: European wheat prices fell on Monday, tracking weakness in Chicago futures, with both markets weighed down by abundant global supplies after a record harvest in the 2015/16 season.
Dealers said there is a strong flow of exports from the European Union but concern persists that it may be insufficient to prevent a significant build up in stocks.
“The French, the Germans, the Poles, the Romanians, they need to export a lot more,” one European dealer said.
Port data compiled by Reuters continued to show exceptionally high volumes of French wheat being exported since the start of the month. September milling wheat on Paris-based Euronext was down 1.50 euros, or 0.9 percent, at 162.75 euros at 1514 GMT.
However, dealers said that speculators’ large net short positions mean there is potential for a short-covering rally. Speculators extended an already large net short position in CBOT wheat in the week to May 10.
November feed-wheat futures in London were off 0.80 pounds, or 0.7 percent, at 116.75 pounds a tonne. Dealers said volumes were light because of public holidays in several countries including France and Germany.
