July 1, 2011

EU wheat plunges to eight-month low

European wheat futures recorded losses triggered by unexpectedly bearish US corn estimates to trade down 7%, at an eight-month low.

The surprise increase in the US government's estimates of corn area and stocks prompted calls for US corn futures to open limit-down in later Chicago trade.

By 1339 GMT, benchmark November milling wheat on the Euronext exchange was down 6.63% at EUR186.50 (US$270) a tonne, after falling to EUR185.5 (US$268), a level last seen on Oct 22.

The contract had traded slightly higher prior to the release of acreage and stocks reports by the USDA.

In the much less liquid corn market on Euronext, August futures were down 2.93% at EUR232 (US$336).