The less active front-month September futures slipped to a new contract low of 165.75 euros, below a previous low of 166.00 euros touched last Tuesday. Chicago grain futures were also lower, pressured by favourable weather for US corn and soybeans. Euronext wheat was weakened early last week by a slide in Chicago corn after an unexpected increase to the U.S Department of Agriculture's harvest outlook, which added to pressure from rising expectations for the European Union wheat harvest.
A drop in the euro against the dollar helped Euronext regain some ground at the end of the week, but supply sentiment remained negative in slow trading marked by many participants taking summer holidays. "The 'harvest pressure' factor is strong at a time when French wheat needs to stay competitive for export against Black Sea origins," consultancy Agritel said.
"A window of price support could come when the current harvest pressure is over and before the Argentine crop arrives on the market," Agritel added. Western European exporters like France and Germany typically face stiff competition from Black Sea suppliers like Russia at the start of the July-June export season. Expectations for a bumper crop in Argentina, which harvests its wheat towards the end of the calendar year, could bring a fresh wave of competition in the second half of the season.