European wheat prices were flat on Wednesday as operators gave paused after a strong fall the previous day but traders said the mood for sellers remained gloomy due to hefty supplies and export concerns. March milling wheat was unchanged at 153.25 euros a tonne by 1711 GMT. It had shed 1.5 percent on Tuesday.
The most active contract May was also stable at 160.50 euros a tonne. "The market is pausing in its fall, helped by Chicago and a flat euro. But the trend remains heavy with farmers' sales well behind previous years and therefore significant amounts yet to be sold," a Euronext trader said. Egypt's Agriculture Ministry sent a letter to traders saying it will allow an ergot fungus tolerance level of 0.05 percent in wheat imports, hoping suppliers will make offers in international purchase tenders. But importers will wait to see if the tolerance policy is applied to shipments which are arriving or have arrived in Egypt, traders said.
Some traders also said the fact that the letter was issued by the office of the agriculture minister and not by the agriculture quarantine authority, which had rejected the French cargo for having trace levels of ergot, presented a problem. Bunge Ltd is seeking to resell its cargo of French milling wheat that was rejected in December, traders said. German cash premiums in Hamburg were marked up to compensate for an overnight fall in Paris, with a low level of farmers selling also lending support.
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