European wheat prices rebounded slightly on Thursday on technical factors before the expiry of the front-month contract and after a rise on US markets, but the mood remained bearish due to hefty supplies, traders said. May milling wheat, the benchmark on Paris-based Euronext, was 0.7 percent higher at 153.50 euros a tonne. Front-month March, which is expiring on March 10, was down 0.50 euro at 143.00 euros a tonne.
"It may sound like a broken record but the market remains bearish," a European trader said. Traders noted that good weather conditions were boosting crop development, further weighing on prices as this could mean a hefty crop at the end of the cycle, provided there is no cold snap in the coming weeks.
Weather forecaster Meteo France said the 2015/16 winter was the warmest in France since 1900. Over the whole season, the average temperature was 8 degrees Celsius above the normal 2.6 degrees (36.7 Fahrenheit). German cash premiums in Hamburg were firmed by an increase in purchase interest, with German wheat looking more competitive in export markets.
Standard wheat with 12 percent protein content for March delivery was offered for sale at level the Paris May contract against 1 euro under on Thursday. Buyers were seeking 1 euro under Paris. "I think there is more exporter interest in German wheat which in the higher protein categories is looking about the cheapest in international markets at the moment, along with other Baltic region wheat," one German trader said.
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