European wheat prices edge lower as large crop looms

European wheat prices edged lower on Tuesday, under pressure from a firm euro and bearish fundamentals with the prospect of good harvests ahead. May milling wheat on Paris-based Euronext was 1.00 euro or 0.7 percent weaker by 1610 GMT at 151.25 euros a tonne, just above key support of 151.00, after rising to 152.75 euros. Traders said price moves remained sensitive to fund positioning which sent the market higher last week without the support of fundamental. Prices tumbled back the following day.
"Funds are still setting the pace in the market. Matif (Euronext) follows Chicago even if fundamentals in Europe remain heavy with a large crop looming," a trader said. The European Union's crop monitoring service MARS on Tuesday raised its forecast for average winter cereals yields in this year's harvest as favourable weather in major producing countries helped crop development.