Wheat prices in major west European markets were weak on Monday, pushed down by a lower opening by US wheat, but a public holiday in the benchmark French market meant prices were viewed as nominal by some traders. The Paris market was open despite the French holiday. Paris's benchmark January wheat was down 2.00 euros at 221.25 euros at 1702 GMT.
French prices fell after a drop in US wheat in early Monday trade in Chicago, in turn largely caused by profit-taking. "Overall there is not much that you can read into the Paris market today because of the public holiday," one trader said. Paris' November contract, no longer seen as the benchmark as it is close to expiry on November 10, was down 2.5 euros at 222.50 euros. "This contract can still produce fireworks and is being closely watched," a trader said. Feed wheat futures in London turned lower on Monday, tracking losses in both Paris and Chicago, after earlier climbing to a fresh 2-1/2 year high.
London January wheat stood 1.25 pounds lower at 172.00 pounds a tonne at 1702 GMT after earlier peaking at a contract high of 174.00 pounds, which was also the highest level for the second month since April 2008. British dealers said a modest setback was not surprising given prices had risen about 10 pounds in the last week but the overall mood remained bullish.
They noted the market was underpinned by dry weather in some key US winter wheat areas and the continuing impact of drought in Russia. Dealers said UK wheat exports had begun to slow after a strong start to the season, hurt partly by a stronger pound against the euro.
Germany's market was weak in thin trade, with about a third of Germany also on holiday. Standard new crop bread-quality wheat for November delivery in Hamburg was offered for sale down three euros at 222 euros a tonne with buyers at 219 euros. "The market was lacking impulse with people unwilling to take risks without a firm lead from French prices," one German trader said.
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