European wheat eases with US on Black Sea rain
Wheat prices in western Europe fell on Tuesday in line with the US market as rain in the Black Sea region and Australia eased recent concerns about dry weather denting global wheat supply.
Fears that Spain’s banking system could fall victim to a euro zone debt crisis curbed buying across markets, although resulting weakness in the euro provided some background support for grain markets priced in the common currency.
"The rain that has fallen in the Black Sea region in the past few days is weighing on prices but we’re not yet completely out of this weather market," a futures dealer said.
Benchmark November milling wheat on the Paris futures market was down €2.50 or 1.16% at €213.50 a tonne.
European traders were keeping a close eye on the December contract in Chicago, which is trading around a key support of $7 a bushel. If it was broken, it could pull the Euronext November contract below its €210 support.
"For the moment there is not enough new real material to break the $7 support," one trader said.
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