EU wheat prices down by falling US markets

European wheat prices fell to their lowest in around a month on Monday, pressured by continued weakness in US markets. March milling wheat on the Paris-based Euronext exchange unofficially closed down 1.7 percent or 3.0 euros at 166.50 euros a tonne.
The contract had been relatively stable over the past two weeks, moving in a range between 168.75 and 171.00 euros a tonne. Traders said the close below the key support of 168.00 euros a tonne could be a bearish signal. US wheat futures in Chicago fell 1 percent in early Monday trade as dealers focused on large global supplies while falling soybean prices also pressured prices.
"The price correction that started in Chicago is having repercussions for the European market, prompting it to test a key support," a Euronext trader said. Another trader noted relief in the EU market following a rise in temperatures in most of France after a cold spell in the past few weeks and as much-awaited rains were forecast this week. This reduced concerns about weather damage to France's 2017 wheat crop.
But the amount of actual rainfall will be closely monitored, he said.
Western European wheat prices are expected to depend increasingly on currency rates as production rises in Black Sea countries such as Russia and Ukraine, intensifying competition.
Algeria's new international tender to buy wheat for April shipment provided support.
French port data showed two rare shipments with one barley cargo heading to Lebanon and one wheat cargo to Angola.
German cash market premiums in Hamburg were little changed.
Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris March contract. Buyers were seeking 4 euros over.
"Main support to premiums seems to be coming from an unwillingness of farmers and regional traders to sell," one German trader said. "There is dissatisfaction with the level of outright prices and sellers are often not prepared to follow falls in Paris."
"Some large mills in north Germany are more interested in July delivery and seem to have a good nearby supply cover."
Low water levels on the Rhine, Danube and other German rivers continued to make logistics difficult, traders said.