European wheat futures in Paris fell on Tuesday as prices consolidated after recent export-fuelled gains and a closely watched US government crop forecast failed to excite the market. Benchmark May milling wheat on the Paris-based Euronext exchange unofficially closed 0.50 euros, or 0.2 percent, down at 189 euros ($213) a tonne.
May had been down 0.25 euros just before the US Department of Agriculture (USDA) report was issued at 1600 GMT. The contract earlier rose to 190 euros but failed to break chart resistance at that level, as has been the case on several other occasions over the past week.
Chicago wheat remained in negative territory after publication of the USDA world supply and demand estimates, while corn and soybeans were slightly firmer. A brisk run of shipments was expected to lead French farming agency FranceAgriMer to raise its 2018/19 export outlook again in Wednesday's monthly French forecasts.
A tender announced by Algeria could also bring fresh sales for French wheat in its main export market, though the June shipment period showed that Algeria would not be buying more supplies for May after a small purchase. Traders were monitoring developments in Egypt after sources reported the rejection of a cargo of French wheat for exceeding a limit on traces of ergot fungus.
There was also concern that dryness in France could threaten what have been decent crop conditions this season. France's farm ministry on Tuesday projected this year's soft wheat area at 5.01 million hectares, up 2.8 percent from last year and close to the ministry's previous estimate of the soft wheat area.
In Germany, cash premiums in Hamburg were little changed, underpinned by a brisk programme of ship loadings in German ports. Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale at about 6 euros over Paris May, though lower offers of 5 euros over Paris were heard.
"A ship is set to load 50,000 tonnes of wheat in Hamburg, believed to be for South Africa, along with others in Rostock, which is supportive," one German trader said. "Old-crop German wheat is also looking competitive against Russian Black Sea supplies and even other exporters in the Baltic region. "The new crop is still looking good with mild weather for the time of year in most of Germany, although dryness is still a worry in some areas."
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