European wheat prices fell on Wednesday, pushed down by weaker US markets, despite an export-boosting fall of the euro against the dollar. US wheat prices were in turn pushed down by concern that interest rate cuts in China may not be enough to stimulate economic growth in the key soybean and grain importer. Paris December milling wheat, the benchmark on the Euronext market, unofficially closed down 0.8 percent or 1.50 euros at 173.50 euros a tonne.
"The weaker euro could have helped us but we prefer following Chicago," a trader said. "The macroeconomic context remains uncertain." There were fears French export shipments could be hindered as Senalia, France's largest grain silo operator, has suspended all ship loading and barge unloading at the port of Rouen because of a strike at a cargo handling contractor.
Senalia said it has launched a tender to find new handling firms with successful bidders to be chosen on September 1. But traders said the uncertainty about shipments was likely to last until at least the end of next week. In the meantime exporters could be forced to get their supplies from private silos in Rouen or move cargoes to other ports, they said. German cash premiums in Hamburg were little changed as Germany's wheat harvest reached its final stages.
New crop standard wheat with 12 percent protein content for September delivery in Hamburg was offered for sale unchanged at 0.5 euro over the Paris December contract. Buyers were seeking 0.5 euro under Paris. "Germany's harvest this year is decent in size and there are no real problems with quality which is overall good," one German trader said. "Harvesting should be finished this weekend. The outlook is for plentiful domestic supplies in Germany, with the stronger euro this week and heavy competition from other countries making the export outlook poor."
"Farmers are unwilling sellers at current low prices, but mills have been making advance purchases for 2016 and even early 2017 deliveries." Wheat for May 2016 delivery in Hamburg was negotiated at premiums of around 3 euros over Paris. "This is a low level compared to past years and also seems to indicate that the export outlook poor, supplies will be large," a trader said. Prices at 1630 GMT.