European grain prices fall on hopes for bumper crops
European grain prices fell Wednesday, dragged down by a fall in futures traded in Chicago and by predictions that France will harvest a record corn crop this year.
The association of French corn producers (AFPM) predicted a record crop of nearly 17 million tonnes.
"The producers themselves announced it while the market had estimated a crop of 16.7 million (tonnes)," said Edward de Saint-Denis of the brokerage firm Plantureux & Associates.
Grain prices have come under pressure after the US Department of Agriculture last month forecast a record global wheat crop and a new high mark for US corn output this year.
Russia, one of the world's top grain exporters, expects its grains harvest to reach more than 105 million tonnes this year, up from 92.4 million tonnes.
The agriculture ministry also expects record grain exports of 27.5 and 30 million tonnes.
Predictions of bumper crops in Ukraine and China have also helped to outweigh concerns about France's wheat crop after a cool and humid summer.
Industry body FranceAgriMer on Wednesday predicted the EU's top grower would ship only 8 million tonnes in 2014-15, its weakest figure for seven years.
By early afternoon on Euronext, a tonne of corn was down by two euros for delivery in November at 142.75 euros, while wheat for November delivery lost 1.50 euros to 167.75 euros.
© 2014 AFP