EU wheat trades lower, large new crop weighs

EU wheat futures are lower Tuesday, consolidating after a late sell-off in Chicago last night, and pressured by impending bumper supplies of new crop all over Europe.

London wheat is £0.50-1.50 easier and Paris-based milling wheat futures EUR2-3 lower.

Traders say that the German wheat crop has improved since the start of June with rainfall in the northern and eastern areas. Favourable precipitation was being reported in the Scandinavian countries.

This adds onto forecasts for bumper output so far in the rest of Europe. Thus even though more wheat is expected to be used in feed rations, replacing feed products such as imported corn and sorghum, traders said it will remain a challenge to immediately soak up such a large European harvest.