European wheat prices dipped on Thursday, pressured by a surge in the euro against the dollar that hurt its competitiveness on world export markets, and shrugging off a hefty volume of export licences granted this week. March milling wheat, the new-crop benchmark on Euronext, was 0.7 percent lower by 1635 GMT at 179.75 euros a tonne. A rally on US wheat markets helped prevent prices falling further as the euro gained 3 percent against the dollar.
The European Union granted export licences for 1 million tonnes of soft wheat this week, the highest volume granted so far during the 2015/16 season, official data showed. A sharp fall of the euro in recent weeks had boosted demand for the cheaper European wheat. "The (surge in the euro) is not good news for exports but Chicago is pulling us," a trader said. The euro gained after the European Central Bank cut its interest rate on deposits by just 10 basis points, disappointing some euro short-sellers who were expecting a sharper move.