Euronext wheat falls amid renewed US-China tensions
PARIS, Oct 10 (Reuters) - Euronext wheat eased on Friday in step with Chicago futures as criticism of China by U.S. President Donald Trump clouded prospects for resolving a trade dispute that has hit U.S. crop exports.
Rising global wheat supply, highlighted by consultancy Sovecon's latest increase to its Russian harvest forecast, also curbed Euronext after prices hit a near two-week high on Thursday.
December wheat BL2Z5 on Euronext settled 0.7% down at 189.25 euros ($219.78) a metric ton, having hit a peak of 190.75 euros on Thursday - retreating closer to a contract low of 185.00 euros from last week.
Chicago wheat Wv1 shed over 1% to set a five-year low, tracking losses in soybeans Sv1 as traders saw diminishing chances for a U.S.-China settlement that could revive stalled soybean trade. GRA/
U.S. President Donald Trump threatened to hike tariffs against China and cancel a planned meeting with President Xi Jinping, in social media comments that appeared prompted by Beijing's announcement of more rare earths export controls.
"Trump's post was a bombshell," one futures dealer said.
The dollar fell in market reaction to the comments, pushing up the euro in an additional drag on Euronext. FRX/
A two-month low for the euro EUR= against the dollar on Thursday had reinforced the export competitiveness of western European wheat before a tender on Friday by Tunisia.
The North African country booked 100,000 tons in the tender and French wheat was seen as in contention to cover at least part of the optional-origin deal, traders said.
“But Tunisia is a close one to call with other Black Sea prices still sharp and Romanian/Bulgarian wheat looking to have a good chance to supply," a German trader said.
Argentine wheat was looking cheap, especially for December shipment, but faces high shipping costs to North Africa, the trader added.
French, Romanian and Ukrainian wheat prices were similar on Friday at between $225-$227 a ton FOB for the November/December shipment period sought by Tunisia, or about $2 a ton cheaper than Russian depending on Euronext and exchange rate moves, according to traders.
In France, farmers had sown 5% of the soft wheat area for next year's harvest by Monday, farm office FranceAgriMer said.
($1 = 0.8611 euros)
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