European wheat futures dropped on Tuesday as Chicago prices fell and traders made technical adjustments in the absence of new fundamental factors. Front-month May milling wheat on the Paris-based Euronext was down 1.00 euro or 0.6 percent at 164.00 euros a tonne at 1616 GMT.
Euronext spot prices rose on Monday, bouncing from a contract low of 162.75 euros on Friday, supported by a rally in US corn and wheat following US government planting forecasts. But Chicago wheat fell during early US trading on Tuesday. Euronext again saw spread trading that pressured spot futures, dealers said. "The market is lacking a real driver whether up or down. Weather, particularly low rainfall, is being monitored but for now there is no clear threat to crops," a Euronext trader said.
A spell of dry, mild weather has revived concern about soil moisture after low rainfall during winter in France. In Germany, cash market premiums in Hamburg were stable. Standard wheat with 12 percent protein content for April delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris May contract. Buyers were seeking 4 euros over.
"The market is being supported by brisk export loadings in German ports but new export business is scarce," one German trader said. "Overall the market has a weak tone to it." Turkish importers have bought some high protein milling wheat shipments from the Baltic States including Lithuania to replace lost supplies from Russia, traders said.
In Poland, prices were weak because of reduced demand from exporters while farmers are busy with spring grain planting and field work and are currently not interested in selling. Export prices for 12.5 percent protein wheat fell about 5 zloty in the last week to 720 zloty (169.2 euros) a tonne for April delivery to port silos.
"Exports are slowing down, it is difficult to find export buyers," one Polish trader said. The lineup of vessels loading wheat in Polish ports is also getting thinner after the recent busy period. Polish internal market prices also dropped with millers generally seen with good supply cover for the next four to six weeks after recent purchases.
Internal market prices for 12.5 percent protein wheat fell 15 zloty on the week to 680 to 715 zloty a tonne depending on the region. "Warm sunny days and some showers in the whole country mean expectations for a good grain crop are growing again," the trader said.
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