Wheat Slides in Paris as Ample Supply Seen Expanding Stockpiles

Sep 01, 2014 9:22 am ET

Sept. 1 (Bloomberg) -- Wheat futures fell in Paris trading as rising production in Europe and Russia is predicted to swell global stockpiles of the grain.

World wheat production is forecast to rise to a record 713.4 million metric tons in the 2014-15 season from 712.5 million tons in 2013-14, the International Grains Council forecast on Aug. 29, reversing its outlook for falling output.

“The fundamental situation remains difficult for the grains, as illustrated by the latest IGC report, with an increase in estimates for world wheat production,” Paris-based farm adviser Agritel wrote in a market comment.

Milling wheat for November delivery slipped 0.4 percent to 173.50 euros ($227.96) a ton on Euronext in the French capital by 3:12 p.m. local time. Trading was closed on the Chicago Board of Trade for the U.S. Labor Day holiday.

Wheat carryover stocks are seen rising to 195 million tons at the end of the 2014-15 season from 188 million tons a year earlier, the IGC said. The council lifted its outlook for ending stocks by 2 million tons from a month earlier.

Rapeseed for November delivery declined 0.2 percent to 323.25 euros a ton in Paris, while corn slipped 0.2 percent to 151.50 euros a ton.