European wheat futures ended lower on Monday as a pre-weekend rally faded in the face of still tepid export activity. Benchmark December milling wheat on Paris-based Euronext settled 2.00 euros lower at 200.50 euros a tonne, retreating from an earlier 12-day high of 203.75 euros.
Wheat markets had rebounded from multi-week lows on Friday, led by a surge in Chicago as a rare purchase of US wheat by Egypt's state buyer boosted market sentiment. But futures turned lower during Monday's session as traders set the Egyptian news against sluggish overall US and European Union exports as well as upward revisions to Russian supply.
"The medium-term hope is that Russian export supplies will start selling out and that other origins will get more of a chance in export markets currently dominated by Russia," one German trader said.
"Egypt's tender on Friday may have been a first indication of this but it could take some time." European Commission data showed that EU soft wheat exports in 2018/19 were running 24 percent below last season's level. In Germany, cash premiums in Hamburg were flat as export demand remained weak.
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December. "Export loadings remain sluggish, with one ship set to load about 10,000 tonnes of wheat in Hamburg for Namibia and feed wheat demand is more in focus than exports," the German trader said.
Feed wheat in Germany's South Oldenburg market for November/December delivery was offered for sale well over milling wheat, up 1 euro at around 216 euros a tonne, with buyers seeking 214 euros.
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