European wheat edged lower on Monday as it continued to factor in a bearish US government report released late Friday, and was pressured by talk French wheat could face competition from cheap Russian origins on its key Algerian market. Benchmark December milling wheat on Paris-based Euronext was down 0.1 percent at 1613 GMT to 201.25 euros a tonne.
It had fallen as low as 199.50 euros before paring most of its losses, helped by a fall in the euro against the dollar, making euro-denominated grains more competitive on world markets. "The market will look at whether we remain above 200 euros," a Euronext trader said.
French port data continued to show slow exports out of the European Union's top grain exporter, with Algeria nearly the sole destination for French wheat. Talk that Russian wheat exporters are pushing to register with the Algerian authorities by the end of the year to secure access to the major North African wheat importer was a concern, but not a surprise.
"The question is rather when it will happen," another trader said, noting the Black Sea exporter had already gained a foothold in other markets previously dominated by France such as West Africa. In Germany, cash premiums in Hamburg were little changed as low demand continued.
Standard bread wheat with 12 percent protein for October delivery in Hamburg was offered for sale unchanged at 2.5 euros over Paris December. "Germany's wheat exports are running at a very slow pace after the bad crop this summer and no improvement is in sight with Russia, Romania and other Black Sea suppliers dominating export markets," one German trader said.
"There is moderate demand for feed wheat in north Germany from Denmark which also suffered a bad harvest this summer, but not enough to excite the market. Feed wheat prices remain firm." Feed wheat in Germany's South Oldenburg market for October/December delivery was offered for sale well over milling wheat at around 214 euros a tonne, with buyers seeking 212 euros.
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