Euronext Wheat fell on Friday for the third consecutive day, holding near its five-month low. A rising euro and an abundance of grain from the Black Sea at a lower price kept traders pessimistic about export prospects.

The December wheat contract, which was the most actively traded on Euronext in Paris, closed 0.4% lower, at 208.75 Euros ($233.17) per metric ton.

The contract remained above the low of 207.75 euro, which was its lowest level since March 11.

The less liquid September contract, which expires at the beginning of next month, was settled down 1.1% to 194.50 euro. It had earlier set a contract low of 193.750 euro, which marked another five-month-low for a price in the front month.

The dollar fell after Federal Reserve Chairman Jerome Powell sent a clear message that the long-anticipated U.S. rate cut was coming next month.

Chicago wheat prices also dropped, despite the drop in the US dollar that boosted exports, due to the Black Sea competition.

The wheat market is lacking enthusiasm which has allowed prices to fall. U.S. grain prices are likely to fall further, European farmers continue to hold large quantities of grain and Black Sea supplies remain plentiful," British merchant ADM Agriculture stated in a recent note.

It is hard to portray a positive factor for the market as long as this scenario persists.

The price of Russian 12.5% for the September Black Sea shipment is around $215 to $218 per ton FOB. Russian 11.5% comes in at about $212, according traders.

The price of 11.5% Ukrainian wheat was around $219 per ton FOB, with European interest at much lower prices at $198-$200 per ton FOB Odesa.

A German trader stated that "cheap Black Sea Wheat is still offered at low prices that the west EU can't match."

Some European buyers have been talking about purchasing milling wheat at low prices from Ukraine along with the usual large quantities of Ukrainian feed wheat.

FranceAgriMer, the farm office, said that farmers in France finished harvesting soft wheat last week.

After torrential rainfall this year, the French wheat crop will likely yield the lowest quantity since the 1980s. It will also have mixed quality.

Workers at Canadian National Railway returned to work outside Europe on Friday after a rail strike that began on Thursday. This reduced the risk of disruptions to Canada's massive crop exports. ($1 = $0.8953 euros) Reporting by Gus Trompiz and Michael Hogan, Hamburg. Editing by Aurora Ellis.

(source: Reuters)