European wheat futures for the coming harvest tumbled to seven-month lows on Monday under pressure from large global supplies and a slowdown in export demand. Prices also came under pressure from a relatively firm euro and from prospects that Russia could remove or otherwise ease its wheat export duty before the measure's original end date of July 1, bringing more export competition to EU suppliers.
December milling wheat, the new-crop benchmark on Euronext, was down 2.00 euros or 1 percent by 1500 GMT to 175.00 euros a tonne. It hit 174.00 euros, its lowest level since
October 1, 2014, in earlier trade. French consultancy Agritel said a breach of 176 euros support could lead the market to fall to 170-172 euros, a major support zone which should give buyers a coverage opportunity.
Front-month May, the last contract for the current 2014/2015 season fell to its lowest since November 11, 2014. Export demand remained thin with port data showing only two cargoes loading milling wheat in Rouen on Monday, one of them for Algeria, and another one expected later this week. The lack of demand prompted French silo operator Senalia, one of the delivery silos for Euronext's milling wheat futures, to say on Friday it would stop taking wheat deliveries this week and until further notice.
German cash wheat premiums in Hamburg were marked up to compensate for the early-day fall in Paris, with crop-friendly rain continuing to raise prospects for a good harvest. Standard wheat with 12 percent protein content for delivery in Hamburg in May was offered for sale at a premium of 5 euros over the Paris May contract against 4.5 euros over on the previous trading day Thursday. Buyers were offering 4 euros over Paris.