- Prices head for weekly decline amid record French harvest
- Grain can't compete with lower-priced supplies from Russia
French wheat prices near a 10-month low still aren’t enough to entice importers.
While milling wheat futures in Paris rose for the first time in six days, they’re still set for a fourth weekly drop as a record French harvest has left silos bursting from Rouen to Dunkirk. Egypt, the world’s largest importer, bought three cargoes of cheaper Russian grain in a tender on Thursday and the country’s state buyer hasn’t purchased French supplies since April.
“There is a heavy oversupply of cereals and no demand really to take it out of the market,” James Bolesworth, a director at consultant CRM Agri-Commodities Ltd. in Newmarket, England, said by phone. “French wheat in particular has come under a lot of pressure because the tenders haven’t been going to them.”
Back-to-back global bumper harvests have boosted supply and pressured prices around the world, sending benchmark futures in Chicago to the lowest since May. Demand for French wheat has also declined partly because Russian shippers can undercut competitors because of a weak ruble and lower freight rates.
Milling wheat futures for December delivery added 0.6 percent to 167.50 euros ($186.50) a metric ton by 12:09 p.m. on Euronext in Paris. Prices are down 3.3 percent this week and earlier Friday reached the lowest since Oct. 27.
Egypt bought 170,000 tons of Russian wheat after offers in Thursday’s tender were dominated by French and Russian supplies. While some French grain was priced competitively, Russian wheat was the cheapest when accounting for shipping costs.
On the Chicago Board of Trade, futures for December delivery rose 0.6 percent to $4.6825 a bushel after earlier touching the lowest since May 5.
Corn futures for the same delivery month were little changed at $3.6175 a bushel, set for a 3.5 percent weekly decline. Soybeans for November gained 0.5 percent to $8.7425 a bushel and soybean meal for December increased 0.4 percent to $309.30 for 2,000 pounds.