EU wheat eases while maize hits new highs

- Euronext wheat eased on Thursday, curbed by a stronger euro and big expected harvests in the Black Sea export region, but maize futures reached new contract highs as more hot, dry weather was set to further strain maize crops in Western Europe.

September wheat BL2U6 on Paris-based Euronext settled 0.5% down at €202 ($231.07) a metric ton, after a rebound from Tuesday's two-week low of €200.25 petered out.

Chicago wheat Wv1 also lost momentum created by Tuesday's surprise cut to the official U.S. wheat planting estimate, paring gains before Friday's U.S. holiday. GRA/

"While tighter North American wheat supplies have improved the underlying market balance, abundant Black Sea availability and uncertain export demand are likely to limit upside unless adverse weather materially reduces production prospects," British merchant ADM Agriculture said.

A rise in the euro EUR= against the dollar, following weaker-than-expected U.S. jobs figures, pressured Euronext by making European grain more expensive overseas. FRX/

An import tender issued by Saudi Arabia seeking 655,000 tons of wheat brought fresh demand to the market, though Black Sea origins like Russian wheat were seen as better placed than Western European wheat to win sales, according to traders.

There was still uncertainty over possible yield losses caused by a record heatwave in France.

Market participants now expect France's main wheat crop to be well below last year's 33.4 million tons, but many still see a sizeable volume surpassing 30 million tons.

November maize EMAX6 on Euronext settled 1.1% up at €228.75 a ton, after setting another contract high at €229.

French growers are projecting a potential 30% drop in maize production as crop damage from the June heatwave comes on top of a sharp fall in planting.

Hot, dry weather is forecast in much of France and Spain for the week ahead, which could further stress maize (corn) crops.

"The Euronext-CBOT (Chicago) corn spread is at the highest level since 2022 (another hot summer), indicating that EU imports could rise noticeably," Andrey Sizov, head of consultancy Sovecon, said.

In France, a fifth barley shipment for China was now scheduled to load this month, LSEG data showed, adding to brisk early-season demand. GRAIN/SHP/FR

($1 = 0.8742 euros)