EU wheat futures fall to five-month low

Euronext wheat futures closed slightly lower on Friday as the market struggled to recover from a near five-month low linked to rain relief for the dry US grain belt.
Paris futures have also been sapped this week by technical pressure after price support levels were breached, and a rally in the euro against the dollar.
May milling wheat on the Euronext market's main No. 2 wheat contract fell in opening trade to 181.75 euros a tonne, its lowest since November 21, as selling pressure continued after a late fall on Thursday.
The contract later steadied but still settled down 0.50 euros, or 0.3 percent, on the day at 182.75 euros. This left it down 7.50 euros, or nearly 4 percent, over the week.
New-crop December milling wheat touched its lowest in more than a month at 184.25 euros before settling 0.50 euros lower at 185.00 euros.
"The market has been steadily scaling back the weather risk in the United States," one Euronext trader said. "People are also no longer talking about the conflict in Ukraine while Black Sea prices are very low for the new crop."
US prices edged higher on Friday but the bounce was too tentative to stir the European market.
Strength in the euro against the dollar this week has added to bearish sentiment and encouraged traders to shrug off a strong volume of weekly export licences that kept the EU on course for record full-year soft wheat exports.
Brisk activity at ports was nonetheless underpinning cash prices in Germany.
"There is talk of long waiting times for trucks at some ports because of the huge volumes of wheat arriving to be loaded. The large German export programme is expected to continue into May," one German trader said.
Standard wheat with 12 percent protein content for delivery in Hamburg in April was offered for sale at an unchanged 1 euro over the Paris May contract. Buyers were offering level Paris and the same price was also said to have traded on Thursday.
Despite brisk exports, the EU was still expected to have large end-of-season stocks, and faced aggressive prices for rival Black Sea origins for next season, traders said.
Russia's Agriculture Ministry has proposed to the government to cancel a tax on wheat exports from July 1, a source at the ministry told Reuters, a move that could sharpen export competition.