Spot wheat futures on Euronext fell to a fresh one month low on Thursday, pressured by doubts over end of season export demand in France, while new-crop prices ticked higher amid concerns that a warm spell could exacerbate dry crop conditions.
Front-month old crop May wheat on Paris-based Euronext settled 1.50 euros, or 0.8 percent, down at 183.50 euros ($206.07) a tonne. It earlier touched its lowest since March 13 for the second day in a row, at 183.25 euros.
Euronext will be closed on Friday and Monday for the Good Friday and Easter Monday holidays. In addition to technical adjustments following last Monday's expiry of options on May futures, spot prices were pressured by weakness in US futures and mixed export sentiment in France.
Traders said 120,000 tonnes of US wheat sales to Algeria reported in weekly US export data confirmed that France was facing strong competition to fill recent tender purchases by its main overseas client. New-crop September milling wheat settled 0.25 euros or 0.1 percent higher at 174.50 euros a tonne, as it held above Wednesday's one-month low of 173.25 euros.
Warm weather across France and limited rainfall in northern regions for the coming days were reviving worries about low moisture levels for crops, traders said. Concerns about dry weather were contributing to a lack of selling by farmers in Poland.
"There is still a low level of selling by farmers due to lack of old crop supplies and concern about dry weather, which creates some uncertainty about the condition of the new crop," one Polish trader said. "The water level under soil is very low and some fields desperately need rain."
Poland was among the European countries whose 2018 harvest was damaged by drought. "I think domestic industry needs to buy grain for May and June and is slowly getting nervous due to lack of offers," he said.
Flour mills are offering to buy 12.5 percent protein wheat at 800-840 zloty (187-196 euro) a tonne for May delivery, unchanged on the week. Exporter purchase prices were also little changed for 12.5 percent protein wheat for April/May delivery at 820 zloty a tonne delivered to port silo. In Germany, cash premiums in Hamburg were boosted by an active programme of ships loading German wheat for export.
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