EU wheat prices were lower on Monday, sapped by a slide in US futures and weekend rains which may have improved the outlook for crops in some areas. December milling wheat on Euronext, the most active contract on the Paris-based market, settled down 4.25 euros or 2.3 percent at 178.25 euros. In late trade, it touched its lowest since June 1 at 178.00 euros.
"People have been worried about dryness and the risk yields will drop but it's started raining again in some parts of France," one Euronext dealer said. "There's a decent chance there won't be any real problem and we'll have a good harvest." Dryness, however, remained a concern in some areas. "Weekend rain was not sufficient to provide the moisture now urgently needed and fears are that yield forecasts will be downgraded in the near future," one German trader said.
"Moisture levels in the far north and southern German regions are sufficient but there is a wide area of central and east Germany where it is feared wheat is suffering stress from dryness." Standard wheat with 12 percent protein content for June delivery in Hamburg was offered for sale at an unchanged 1 euro over the Paris December contract. Buyers were offering 1 euro under Paris.
New crop for September delivery was offered for sale at 5 euros over Paris December with buyers at 4 euros over. Polish millers were offering 670 to 725 zloty a tonne (161.4 to 174.7 euros) for 12 percent protein wheat for immediate delivery, up 20 to 25 zloty on the week.
Exporters were offering 740 zloty a tonne for 12.5 percent protein wheat for June/July delivery to ports, up 15 zloty on the week. "South and north east Poland has been wet with good soil moisture and grain growing conditions but Poland's central, western and north western regions are much drier," one Polish trader said. "Concern is that the last 30 days without much rain in these regions could reduce yields, although not much, perhaps a three to five percent loss."
The market was also assessing how much milling wheat is left in the country after huge Polish exports this season. "Last week only one large vessel left the port of Gdynia with 63,000 tonnes of wheat heading for El Dekheila in Egypt. I am not aware of any large ships loading wheat in Poland this week," the trader said.