European wheat prices shed more than 3% this week, pressured by abundant global supplies as traders awaited clearer assessments of potential damage from recent rainfall on the quality of German crops.

Benchmark September milling wheat (BL2U5) on Paris-based Euronext, closed 0.8% lower at 195.5 euros a metric ton. It lost 3.5% this week.

French farmers had harvested 86% of the crop by the end of last week, compared with 71% a week earlier, and well ahead of the five-year average of 59%, farm office FranceAgriMer said on Friday.

“Farmers rushed before the arrival of showers around France this week,” a French trader said.

Crop ratings did not change from a week earlier, with 69% of the French soft wheat crop rated in good or excellent, it said.

Germany’s wheat harvest had again been stopped by unwelcome rain around the country.

“Repeated rain is not what we want at harvest time and if it continues there will be concern about last-minute quality loss,” one German trader said.

Widespread rain is again forecast in Germany over the weekend and early next week, reducing chance of a catch-up.

Traders reported hopes that pressure to sell Russia’s expanding harvest would generate normal supply flows to Black Sea ports in the next couple of weeks.

“But there is also a new problem of rain in parts of Russia which is interrupting the harvest in some central Russian areas,” the German trader said.

Traders said Russian wheat with 12.5% protein content for August shipment was sometimes quoted below $240 at around $238-$241 a ton FOB Black Sea ports.

Traders said Russian 11.5% protein wheat for August shipment was around $237-$240 a ton FOB.

French was now about $5-$7 cheaper than Russian following Euronext falls this week, still depending on Euronext and euro moves.

In oilseeds, Expana, which took over consultancy Strategie Grains, raised its estimate for the EU rapeseed harvest this year, still underway in some parts of the bloc, but sharply cut its projection for sunflowerseed production due to hot weather in key producers.
Source: Reuters