European wheat hit a new 6-week low on Monday on easing concerns of the upcoming crop following dry Spring weather, but pared losses as US markets recovered slightly and helped by strong export demand.
Most active December milling wheat on Paris-based Euronext, unofficially closed unchanged at 186.50 euros ($203.23) a tonne after touching 184.25 euros earlier, a price untouched since March 19.
Old crop May, which expires on May 11, was up 0.6% at 197.00 euros.
Rain last week in top European Union wheat producers France and Germany, plus forecasts for showers forecast this week in southern parts of Russia and Ukraine, have weighed on prices by easing concerns over a lack of moisture for crops.
"Good precipitations are coming a bit late, but they will relieve the hydric stress of winter crops and facilitate the quick growth of spring crops," French consultancy Agritel said, stressing that both crops were well ahead of vegetative development.
The condition of French soft wheat and barley crops declined for the third consecutive week in the week to April 27, farm office FranceAgriMer said in a report on Thursday.
European markets were pressured in earlier trade by declines in Chicago as mounting tensions between Washington and Beijing raised concern about further demand risk, on top of coronavirus disruptions to biofuel and livestock feed markets.
US President Donald Trump said on Thursday the Phase 1 trade deal with China was now of secondary importance to the coronavirus pandemic and threatened new tariffs over the outbreak.
On the supply and demand side the European Commission increased its forecasts for soft wheat exports from the European Union this season and next while scaling back its projections for domestic use of the cereal.
Brisk loadings of German wheat for export in German ports supported cash premiums in Hamburg. Continued rain over the weekend again eased fears of dryness stress to crops.
Standard bread wheat with 12% protein for May delivery in Hamburg was offered for sale unchanged at around 8 euros over the Paris May contract, but with sellers scarce. Buyers were offering around 6 euros over Paris.
In Poland, prices dropped in the last week following weaker Paris prices and lower demand from Polish mills, but strong exports continued.
Exporters were offering to pay about 915 zloty a tonne (200.3 euros) for 12.5% protein wheat delivered port silo for May, down about 30 zloty on the week.
Some Polish flour mills seem to have covered their supply needs for several weeks and lowered their offer prices for 12.5% protein milling wheat by 20-25 zloty a tonne on the week to 860-880 zloty a tonne, traders said.
"There is still optimism about Polish wheat exports with the uncertainty about Russian export restrictions and reduced stocks of old crop wheat in the Baltic States following their big shipments recently," one trader aid.
"More ships are set to load Polish wheat in May and even June despite lower wheat inventories in the country."
In Gdynia port one ship is loading 60,000 tonnes for an unnamed destination and another is loading 55,000 tonnes for Saudi Arabia, a trader said.
In Szczecin, a ship is loading 17,000 tonnes for West Africa and another 60,000 tonnes for an unnamed destination.
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