European wheat futures edge lower

European wheat futures in Paris edged lower in afternoon trade on Friday, tracking weaker Chicago prices, as the EU market continued to lack a clear direction of its own. March milling wheat, the most active contract on the Paris-based Euronext exchange, unofficially closed down 0.5 euro or 0.2 percent at 169.50 euros a tonne.
Chicago wheat had closed higher on Thursday but was weaker in early Friday trade as dealers' attention switched to large global wheat supplies and tough competition from Russia in export tenders. "I can see the market staying in a range," one European futures dealer said. "We've priced in the bearish supply factors but it's going to take time absorb the hefty global stocks."
The euro, which had fallen against the dollar on Thursday in a boost to Euronext prices, steadied on Friday. German cash wheat premiums in Hamburg were flat. Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris March contract, buyers were seeking 4 euros over.
"The market remains listless with little impulse," one German trader said. "Low water levels in rivers in much of Germany and ice in the south continue to cause transport problems on rivers and canals."
In Poland, prices remained firm in the past week on restrained selling by farmers after recent deep frosts and busy export loadings in ports. Polish mills raised purchase offers for 12.5 percent protein wheat by 10 zloty to 660-720 zloty a tonne (152.1-166 euros) for February delivery. Exporters raised purchase offers for 12.5 protein grades for February delivery by 5 zloty to 745 zloty a tonne.
"Farmers and small traders are hoping for higher prices and are not willing to sell," one Polish trader said. "Weather has been very cold recently especially in central, east and south-east Poland with temperatures as low as minus 20 degrees." "With not always enough snow cover to protect crops this could mean some winterkill of grains."
"Export demand is still brisk, we expect that at least 200,000 tonnes of wheat will be exported by Poland in January and the same tonnage is expected to be shipped in February." One vessel has just left Gdynia with 31,000 tonnes of Polish wheat for Spain, another with 33,000 tonnes sailed for Egypt and one is loading 63,000 tonnes for an undisclosed destination. Two further ships have also appeared on port line-ups to start loading 42,000 tonnes and 31,000 tonnes of Polish wheat, also for unknown destinations.