Wheat futures slips to lowest since April as supply pressure persists

PARIS, July 13 (Reuters): European wheat futures fell on Friday to their lowest since April, as widely followed US government forecasts underscored ample global supply including a bigger than expected US crop.
September wheat on Euronext settled 1.5 per cent down at 220.00 euros ($239.84) per metric ton.
The contract fell to 218.25 euros, its lowest since April 22, just after the US Department of Agriculture's (USDA) monthly world report, but like earlier this week held the 220 euro chart support level at the close.
Chicago wheat also fell to its lowest since April, with the USDA increasing its estimates of US wheat production and stocks this season by more than anticipated.
Prices have been under pressure this month as warm, dry weather has helped harvesting advance in US and Russian crop belts. That has outweighed poor prospects in France, where heavy rain is expected to push production down to one of its lowest levels in decades.
"Market attention remains on very cheap Russian wheat and low Ukrainian prices which are approaching the $200 a ton FOB level," one German trader said.
"Mostly hot, dry weather is forecast in south Russia next week which would be positive for harvest progress."
Russian 12.5 per cent protein wheat for August Black Sea shipment was at $220-$221 a ton FOB against around $216-221 on Monday. Russian 11.5 per cent protein was around $211-$213 a ton FOB and Ukrainian 11.5 per cent $199 to $209 a ton FOB.
In Sweden, used to supplement Baltic region export shipments, initial barley harvesting is starting after rain delays.
Trade forecasts of Sweden's wheat crop are around 2.9 million tons from 2.5 million last year.
"Swedish winter grains are looking good but low Black Sea prices are reducing export prospects," a Swedish trader said. "Exporters are talking around 12 euros under Euronext December BL2Z4 for Algeria-quality wheat in Swedish ports but selling willingness is very limited."