Paris wheat futures eased on Friday as a pullback in US prices encouraged consolidation on the European market after export-fuelled gains a day earlier. May milling wheat on Euronext was down 0.75 euro, or 0.4 percent, to 188.50 euros a tonne by 1554 GMT. Over the week, it was almost unchanged after choppy trading linked both to technical factors and export news.
Chicago wheat futures fell sharply as sluggish export demand for US wheat offset support from a projected drop in plantings this year for wheat, corn and soybeans. "There is a bit of a consolidation mood ahead of the weekend," one futures dealer said. "With the 640,000 tonnes of European wheat sold in tenders and the strong volume of export certificates you might have expected to have had more buying on Euronext."
Egypt, the world's largest wheat importer, booked 240,000 tonnes of French and Romanian wheat on Wednesday, after confirming it would keep a higher limit for moisture content that makes it easier for France to compete in the tenders. Algeria's state grains agency OAIC bought 400,000 tonnes of milling wheat for June shipment in a tender that closed on Wednesday, European traders said, adding most of the wheat was expected to be sourced from France.
The European Union, meanwhile, announced 896,000 tonnes of export licences for soft wheat this week, keeping the volume so far in 2014/15 ahead of last season's record pace. In another sign of brisk export demand for EU wheat, there was a pick-up in loadings for Morocco at France's Rouen port, which traders said reflected expectations the North African country will cut import duties shortly to boost grain supply.
A large export programme was also reported in Germany, with trade estimates that 800,000 tonnes of wheat will be shipped out of ports in February and around 1 million tonnes in March. "Shipments will go to buyers including Saudi Arabia, Iran and Algeria," one trader said. "But this is past business being processed so the large shipments are supporting rather than firing up the market."
German cash wheat premiums were little changed, partly curbed by thin demand from local mills. Standard wheat with 12 percent protein content for Hamburg delivery in March was offered at an unchanged 6 euro premium over the Paris March contract. Buyers offered 5 euros over.