US corn forecast weighs on European wheat prices
European wheat prices declined on Friday following the U.S. Department of Agriculture's (USDA) announcement of a higher forecast for the U.S. corn crop. This news led to a drop in corn prices and subsequently affected wheat prices in Europe. On the Paris-based Euronext, December milling wheat closed down 1.1% at €241.50 ($270.21) per metric ton, while Chicago wheat futures fell by 2.4% to $5.00 per bushel.
The USDA's report surprised traders who had anticipated a decrease in production due to adverse weather conditions. The revised production forecasts placed downward pressure on U.S. crop prices at a time when farmers are grappling with high input costs, such as rising diesel fuel prices. Despite this downward trend, some factors provided limited support to European grain prices.
Traders observed that the weak euro against the dollar made European grains more competitive on international markets. Additionally, concerns about potential disruptions to Black Sea exports offered some support to European grain prices.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
