EU Wheat Prices Dip as Traders Lock in Month-End Gains

European wheat futures declined by 2.9% to €222.75 (USD256.54) per metric ton on Friday, a day after traders locked in profits following a July rally of more than 10%. The price drop occurred as traders took advantage of the month-end opportunity to book their gains.

September milling wheat on Paris-based Euronext saw its value decrease due to the strong euro and the EU's efforts to replace Black Sea supplies. This comes after recent attacks by Russia and Ukraine on grain infrastructure and vessels disrupted cargo movements, supporting global grain prices.

Traders noted that a stronger euro weighed on sentiment as the European Commission cut its 2026/27 EU grain and oilseed production forecasts, including an 8% drop in wheat output. Final stocks are expected to tighten to 12.9 million tons, down from 13.8 million forecast last month and 16.5 million at the end of June.

Carsten Fritsch, Commerzbank analyst, stated that 'The supply of wheat in the EU is therefore likely to become noticeably tighter.'