European wheat prices were unchanged to slightly weaker in light trade on Tuesday in a wait-and-see mode ahead of the release at 1700 GMT of a widely-followed US government report. By 1600 GMT front-month March on Paris-based European milling wheat futures was unchanged at 169.25 euros a tonne in light volumes. Further ahead deliveries were mostly weaker.
"It is fairly quiet, we are waiting for the release of the US data," a French broker said. The US Department of Agriculture (USDA) report is expected to show the lowest US winter wheat plantings since 2010 and the highest expected stocks in five years.
The March 16/May 16 spread on Euronext wheat futures settled the day to its lowest level at -5.75 euros/tonne due to a lack of demand and ongoing talks in Egypt, Arnaud Saulais of Starsupply Commodity Brokers said in a note. Letters of credit have been issued for three delayed French wheat cargoes booked by top importer Egypt, but there was still uncertainty as to when shipments would be completed amid wrangling over health and safety rules, trade sources said on Monday.
German cash premiums in Hamburg fell, following the fall in Paris in a cautious mood ahead of the USDA report. Standard wheat with 12 percent protein content for January delivery was offered for sale at 2 euros under the Paris March contract against 0.5 euro under on Monday. Buyers offered 3 euros under Paris. "The overnight fall in Paris has weakened sentiment," one German trader said. "Domestic purchase interest is weak and there is more of a bearish mood in the market today." "The export outlook is also starting to look darker with Russian prices starting to fall."