Euronext wheat consolidates as focus shifts to USDA data

Reuters
Aug 08
Euronext wheat consolidates as focus shifts to USDA data

PARIS, Aug 8 (Reuters) - Euronext wheat was little changed on Friday as participants turned their attention to U.S. government crop forecasts early next week while continuing to cover short positions in front-month futures.

September wheat BL2U5 on Euronext was up 0.4% at 198.25 euros ($231.24) a metric ton by 1514 GMT, while December BL2Z5 was flat at 201.50 euros a ton.

September almost reached a contract low this week while December set a new contract low as supply pressure from Northern Hemisphere harvests persisted.

But short-covering on September positions, ahead of next week's expiry options, and a mid-week recovery on wheat markets spurred by brisk U.S. exports have helped futures move away from lows.

Chicago wheat Wv1 was also little changed, steadying after a rebound from a five-year low. GRA/

Monthly U.S. Department of Agriculture supply-and-demand projections due on Tuesday will be closely watched for revisions to U.S. corn and soybean production forecasts.

"Oversold technical conditions, tight cash markets, and uncertainty around next week’s USDA report could trigger short-covering," British merchant ADM Agriculture said in a note.

"Until then, futures remain vulnerable, with corn anchoring broader grain markets amid a mounting global surplus."

Consultancy IKAR said on Friday it had raised its 2025 Russian wheat crop forecast, supporting expectations that harvest results were improving in the world's biggest wheat exporter after disappointing early reports.

In France, the farm ministry increased its estimate of the main wheat crop, confirming a sharp rebound from last year, though it forecast a smaller maize crop as hot, dry weather was seen affecting yields.

Farm office FranceAgriMer separately estimated that farmers had harvested 94% of this year's soft wheat crop.

($1 = 0.8573 euros)

(Reporting by Gus Trompiz; Editing by Kirsten Donovan)

((gus.trompiz@thomsonreuters.com))

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