Euronext wheat near 9-month low with Black Sea supply in focus

Euronext wheat fell on Friday to approach a nine-month low as cheaper Black Sea supplies continued to curb prices.

Benchmark March milling wheat (BL2H3) on the Paris-based Euronext settled down 1.5% at 302.75 euros ($318.95) a tonne.

It earlier fell to 301.25 euros, close to Tuesday's low of 299.75 euros that was a weakest second-month price (BL2c2) since Feb. 25, although dealers said 300 euros remained a strong support floor.

Friday's lightly traded session was also marked by adjustments before Monday's expiry of December futures (BL2Z2). The front-month contract settled 1.7% lower at 302.75 euros.

Chicago wheat ZW1! also fell.

"The price weakness seen since October has been driven by a better-than-expected production outcome from the Northern Hemisphere harvest, especially from Russia," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

However, Euronext remained underpinned by previous export sales for European Union wheat, including large French sales to China that are expected to drive a busy year-end port loading programme. (GRAIN/SHP/FR)

Cold weather in Europe was being monitored, although snow cover in northern regions and the absence of deep frosts were seen limiting risks of crop damage.

In France, 97% of soft wheat was in good or excellent condition in the week to Dec. 5, farm office FranceAgriMer said in its last weekly update before the winter dormancy period.

($1 = 0.9492 euros)

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