Euronext wheat was lower on Tuesday as US prices fell sharply and a much-anticipated return to the market by Egypt brought only a small purchase by the world's top wheat importer.
Steady crop ratings for US winter wheat and forecasts of rain relief in Europe and the Black Sea region also curbed prices by easing concerns about harvest risks, traders said.
May milling wheat on Euronext settled down 1 euro, or 0.5%, at 197.00 euros ($216.01) a tonne.
It earlier rose to 199.50 euros, equalling a level set on Thursday that marked the contract's highest since August 2018 and a highest spot price since January this year.
Front-month futures turned lower after Egypt bought only two cargoes of wheat in a tender in which it had been seeking to cover two shipment periods in order to boost reserves.
"The market was pricing in much more volume from Egypt. It's a bearish signal," one futures dealer said.
Cash markets in Europe remained firm, however, as overall export activity was brisk and a move by Romania to halt grain shipments due to the coronavirus crisis was seen shifting some demand to other exporting countries.
In Germany, standard bread wheat with 12% protein for May delivery in Hamburg was offered for sale little changed at around 6 euros over the Paris May contract.
Buyers were offering around five euros over Paris.
"The Romanian export ban announced just before the Easter holidays may not have all that much of a long-term impact but added to the restrictions in Russia and Ukraine we are starting to see pressure building up to restrain Black Sea exports," a German trader said. In Poland, export prices for 12.5% protein wheat rose by 20 zloty in the past week to 900-910 zloty a tonne (198.5-200.5 euros) for April/May delivery to port silos.
"I do not think Poland will follow Romania in export restrictions and markets are very bullish on future demand," one Polish trader said.
"In March I estimate Poland exported 600,000 tonnes of wheat," the trader said. "This volume is not exciting in comparison to the Black Sea or France, but for Poland it is a huge quantity especially at this time of the year."
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