European wheat prices were lower on Thursday as abundant global supplies ensured competition in export markets remained tough and the pace of sales lagged last season. March milling wheat, the most active contract on the Paris-based Euronext exchange, was down 0.25 euro at 160.25 euros a tonne by 1724 GMT.
It earlier slipped to a two-week low of 159.75 euros. Weekly European Union data showed that EU soft wheat exports so far in 2017/18 were running 25 percent below the level a year ago. Strategie Grains cut its forecast for EU soft wheat exports over the whole season to 22.3 million tonnes down 0.6 million from its previous monthly estimate, as it stressed intense overseas competition and slow shipments from Germany and Poland.
The French analyst firm also warned that the EU was set to face tough export competition again next season given high global supplies. "As Strategie Grains said today, exports from both Germany and Poland are low," one European trader said. "Early trades in Germany of Polish 2018 new crop wheat for August/September delivery were reported at 169 to 166 a tonne. The prices were regarded as low and indicating some pessimism that Poland's exports will recover in coming months."
Farm office FranceAgriMer had on Wednesday cut its monthly forecast for French 2017/18 soft wheat exports outside the EU by 400,000 tonnes to 9.5 million tonnes, also citing stiff competition. In Germany, internal market prices were again often higher than in export ports, illustrating slack export business.
"Some German mills appear to have made some new flour sales and showed more purchase interest today," one German trader said. "In past years it has been unusual to see internal market prices so strong compared to export ports, but the trend continues with feed makers also offering high prices."
Standard bread wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 3.5-4 euros over Paris March. But 12 percent wheat for April delivery in Berlin traded at 169 euros a tonne. Feed wheat prices in Germany's South Oldenburg market were once more above milling wheat, with January delivery offered for sale at around 173.5 euros a tonne, with buyers at about 173 euros.
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