Milling wheat fell for the first time in three sessions in Paris on speculation that warm weather and rains this week will improve the prospects for crops in parts of Europe and Russia.
Areas of southern and central England may have showers this evening, while temperatures today could climb as high as 27 degrees Celsius (81 degrees Fahrenheit), according to the Met Office. Rains may fall in parts of Ukraine starting today and areas of southern Russia beginning May 30, according to AccuWeather Inc.
“This heat we’ve got at the moment is exactly what the crop needed,” Dave Norris, an independent grain broker in Harrogate, England, said today by phone. “It’s come on enormously in a week, and we’re set to have a bit of rain.”
Milling wheat for November delivery fell 0.2 percent to settle at 216 euros ($270.82) a metric ton on NYSE Liffe in Paris by 6:30 p.m. local time, after swinging between gains and losses. The grain, which climbed for a third straight week last week, has gained 6 percent this month and 11 percent this year.
World wheat output will decline 3.5 percent in the 2012-13 crop year to 670.5 million metric tons as poor conditions weigh on prospects in Russia, Morocco and the European Union, the London-based International Grains Council said May 24. The winter grain harvest in Ukraine will drop by 43 percent this year to 14.5 million tons, the Interfax news agency reported today, citing Mykola Kulbida, head of the Meteorology Center.
“The focus is upon one thing and one thing only these days: the quality and size of the Russian and Ukrainian winter wheat crops,” economist Dennis Gartman said in his daily Gartman Letter.
Rapeseed futures for November delivery increased by 1 percent to 467 euros a ton in Paris. Markets on the Chicago Board of Trade were closed today for the Memorial Day holiday.
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