European wheat prices fell today after their recent surge to record highs.
November milling wheat futures in Paris were down €9 a tonne or more than three per cent at €277.00. Many expected the setback to be short lived with global stocks at a 26-year low.
The contract rose to a record high of €300 yesterday and prices remain more than double those traded in early April.
Wheat prices have been rising for several months, with crops in Eastern Europe devastated by drought while heavy rains and flooding reduced production in Western Europe.
Concern about low stocks has been exacerbated this week by reports that hot winds had further reduced key exporter Australia's already struggling wheat crop.
Key importers jumped into the market to secure supplies this week, fearful that prices could rise even further, and that sent prices to record highs yesterday.