European milling wheat futures fall

European benchmark milling wheat futures fell on Wednesday in the wake of weaker US markets, further depressed by reports of rain in dry southern Russia and US Midwest this week. Weaker equity and commodity markets were also pressuring grain prices.
The dollar rose while European equities and crude oil fell on Wednesday as investors fretted about Spain's struggling banks and indications China will not stimulate its economy. EU markets shrugged off an export-boosting fall in the euro. "It's really the weather that is leading the fall," one trader said.
By 1229 GMT Europe's benchmark wheat, the Paris November contract was down 0.8 percent or 1.75 euros at 209.75 euros a tonne in relatively thin volumes. Paris November was testing the 210 euros support level, dealers said. The next support for the November contract is put at 205-207 euros a tonne.
Dealers also stressed a sharp and rare price gap between wheat and maize futures, with Paris November wheat almost 20 euros higher than Paris November maize. The market may be heading to low wheat demand from feed makers at the start of the season with lower prices transferring more demand to maize, one broker said.
Traders also noted interest for old crop wheat supplies in Dunkirk, with the awaited loading of two cargoes for Algeria which could be a switch from deals initially planned for Argentine wheat. In La Pallice port data showed a new shipment for Libya, the first since early November. The latest weather news from Russia was a depressing factor for prices.
Rain fell overnight in key southern agricultural regions of Russia, with further rainfall expected in the coming days after a dry spell in some regions, the state weather forecaster said on Wednesday. The head of Russia's Grain Union said on Wednesday the country can keep up the pace of grain exports in the coming crop year, as damage from a drought was not enough to dent the surplus significantly and carryover stocks were plenty.
German prices retained a premium over Paris, partly helped by German feed wheat once more quoted way above bread-quality wheat, but with lower Paris prices weakening sentiment. Standard milling wheat for September delivery in Hamburg was offered for sale down 0.5 euros at 217.00 euros a tonne with buyers at 215 euros.