European wheat prices lower in thin trade

European wheat prices edged lower in thin trade on Wednesday, marking a pause in the rebound that started last week, with an absence of new fundamental news leaving little to drive the market. The fall was limited by a sharp rise on US markets where prices were supported by weather concerns in the US grain belt and short-covering.
Benchmark March milling wheat on Paris-based Euronext, settled 0.1 percent lower at 189 euros ($216) a tonne. "The export rhythm in France remains strong and should continue so in April, but a lot has been covered making new sales at this stage of the season more difficult," a Euronext trader said. "At this price level we find more sellers," he added.
Some traders forecast that wheat loadings at French ports, which stood at over 800,000 tonnes at the start of the week, could reach a hefty 1.3 million or 1.4 million tonnes by the end of the month. In Germany, cash premiums in Hamburg were flat. "German wheat exports are running at a steady pace but not enough to get the market excited," one German trader said.
"Some dealers are hoping the strength in the Russian rouble will push Russian export prices further up and so give the EU a bigger share of the export cake." Standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale unchanged at around 6 euros over Paris May. The warm winter so far is raising optimism that Germany's wheat harvest will sharply increase this summer after drought and heatwave cut last year's crop.
"A larger German crop would increase export supplies but the picture emerging is that other Baltic Sea region countries are also expecting bigger harvests after the mild winter," the trader added. "Initial new crop sales offers from the Baltic States are appearing well below Germany partly because of this harvest optimism." "This is not a good sign for early export sales of the German new crop."
Panama-sized shipments of new crop 12.5 percent wheat from Lithuania were currently quoted at around 3 euros FOB under Paris for September/December shipment against about 0.50 euros over FOB to German ports for the same shipment period, he said.