European wheat and rapeseed prices extended their declines on Wednesday, with wheat hitting a six-month low and rapeseed falling to a three-month low, as a stronger euro and uncertainty over U.S. tariffs weighed on the market.
May wheat futures on Euronext settled 0.2% lower at €223.00 ($240.42) per metric ton, after earlier dropping to €220.50, the lowest since August 28. Rapeseed futures fell 2.2% to €499.50 per ton, touching a low of €498.25, the weakest since November 28.
The euro’s surge to a four-month high against the dollar added pressure to EU grain prices, making exports less competitive. However, expectations of tariff relief for certain imports from Canada and Mexico, as hinted by U.S. Commerce Secretary Howard Lutnick, provided some support in late trading.
“Overall, I think markets have decided that the U.S. tariffs are going to be bad for demand,” a German trader said, reflecting concerns over the potential economic impact of escalating trade tensions.
Despite the challenges, EU wheat export prospects have improved as Russian supplies have become less competitive. Traders reported moderate purchases by Moroccan buyers in Germany and other northern European countries, primarily for April shipment. However, feed grain imports like barley may slow as rainfall in Morocco aids pasture recovery.
In France, recent heavy rains have left soils waterlogged, raising concerns about crop losses and the need for replanting. “The soil remains waterlogged, preventing proper absorption of the rain. As a result, many hectares of wheat will be lost, requiring significant replanting,” said Eric Thirouin, head of French wheat producers group AGPB.
Rapeseed prices were further pressured by losses in crude oil, despite a bounce in Canadian canola and U.S. soybean markets.