Weak US markets, a strong euro against the dollar and high freight rates hit French wheat prices on Monday, forcing futures to fresh lows, traders said. Farmers stepped up sales having completed winter sowings but met limited demand from domestic users, well covered ahead of the end-year slow-down, traders said. By 1710 GMT, Euronext January futures were 0.75 down, setting a new contract low at 108.00 euros a tonne. March was off 0.50 at 109.25, a new low for the second position.
"We've seen some selling from farmers in northern France, which is usual at this time of year as the winter sowing ends. But there's not much buying around," one trader said.
US futures hit 18-month lows on Friday and opened down further on Monday as record global crops continued to weigh on sentiment there.
The prospect of cheaper US wheat on world markets provided little cheer for Europe, where a weak dollar and soaring freight rates on the back of Chinese raw material demand have already depressed the outlook for exports.
Traders said they were still awaiting a decision on whether the European Commission would revive export subsidies on wheat, after restarting them on barley.
"There really isn't enough export business to soak up the big harvest (in France) and we still haven't had a decision by the Commission on export refunds," one trader said.
Feed barley was stable around 106 euros a tonne bid for Rouen delivery December to April. Maize was quoted at 103 euros basis Bordeaux for December to March.
Maize futures were mostly unchanged, but June was down 0.25 at 116.00 euros a tonne.
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