Euronext Wheat Futures prices fell sharply today. They broke away from this week's record highs under pressure from a broad decline in financial markets as investors worry about a new variant of the coronavirus.
The March wheat BL2H2, the most active contract on Parisian Euronext, fell by up to EUR 8.00 or 2.6% to EUR 308.75 per ton.
On Wednesday the December futures marked an all-time high for a Euronext contract at EUR 313.50.
"With the South African coronavirus variant, we fell back to 300 euros," said a European trader. "But there are still concerns about the Australian wheat crop."
This month's rally was fueled by doubts about the quality of the Australian crop, which wheat markets are counting on to replenish scarce global supplies of mill-quality grain.
European traders waited to see how US markets would react when resuming trading at 3:30 p.m. UK time today after yesterday's Thanksgiving holiday.
Chicago Wheat Wv1 posted profit taking on Wednesday after hitting a new nine-year high.
Source
Hansa Terminhandel GmbH