EU Wheat Falls on US-Iran Ceasefire Deal Report

EU Wheat Retreats on Report of US-Iran Ceasefire Deal

European wheat futures pared gains in late trade on Thursday after a report that the United States and Iran had agreed to extend the ceasefire and begin negotiations, which also pressured oil prices.

Euronext Wheat Prices Decline

Benchmark September milling wheat on Paris-based Euronext closed down 0.1% at €210.25 a metric ton. Other contracts were slightly higher.

Stronger Euro Weighs on Competitiveness

The euro rose against the dollar, making European goods less competitive on world markets. A German trader noted, 'The stronger euro is a burden to prices today.'

Black Sea Competition and Russian Exports

Euronext remains in contango, with nearby prices depressed by strong Black Sea competition. Russia's May wheat exports are forecast at 3.3-3.5 million tons, with Egypt and Turkey as top destinations.

Ukrainian wheat is the cheapest at around $235-$237 per ton FOB, while French wheat is about $4-$7 higher. No new purchase tenders were reported from the Middle East and North Africa due to the Eid al-Adha holiday.