Euronext wheat reversed from a two-week high to end lower on June 3 as better-than-expected conditions for U.S. corn crops tempered weather worries that had sparked a grain rally in the previous session.
Forecasts of hot, dry weather in North America in the next two weeks, along with reduced estimates of Brazil’s upcoming corn harvest, had triggered the rally.
But U.S. Department of Agriculture data released after Tuesday’s market close eased crop concerns by estimating that 76 per cent of U.S. corn was in good or excellent condition, well above an average estimate of 70 per cent in a Reuters news service poll.
Gains for Euronext wheat had already been capped by favourable crop conditions in Europe.
After showers in May alleviated early-spring dryness, a warm spell was expected to boost plant growth following chilly temperatures in recent weeks.
In Poland, exporter purchase prices for old-crop Polish 12.5 per cent protein wheat were flat compared with last week at around 1,000 zloty (224 euros) a tonne for delivery to port silos in June.
New crop for August/September delivery was at around 915 zloty.
“Wheat export shipments from Poland are slowing down and could be reaching their end in the current season,” one Polish trader said.
“It is not clear if any Polish old-crop wheat will be supplied for the Saudi tender, since new-crop wheat is almost 100 zloty a tonne cheaper but will probably not be available before Aug. 15 which could be too late for this purchase.”
Saudi Arabia, traditionally a large buyer of Polish wheat, purchased 562,000 tonnes of wheat for delivery between August and September in a tender. Other suppliers in the Baltic Sea region including Lithuania were seen as more likely suppliers.