European wheat prices fell on Wednesday, continuing a correction from six-month highs seen as overdone in view of ample global supplies while imports of Romanian wheat in France also weighed. Front-month September milling wheat on the Paris-based Euronext exchange ended down 3.0 euros or 1.8 percent at 163.25 euros a tonne.
Benchmark December ended down 3.0 euros or 1.7 percent at 167.75 euros a tonne. French prices have surged in the last week, with a six-month high hit on Monday on fears that bad weather had damaged France's crop this summer. News that France was set to import an unusually large volume of Romanian wheat illustrated the consequences of the recent rise in wheat prices when world markets remain capped by big supplies.
Wheat export prospects have improved in Russia with an expected record harvest. In Ukraine, analysts UkrAgroConsult raised its harvest forecast on Wednesday. The price fall was capped by uncertainties about the final size of France's crop. "We are waiting for the results in northern France where the harvest is progressing slowly due to humid weather. They will determine the final level," a trader said.
German cash market premiums in Hamburg were little changed as the first indications of the quality of Germany's wheat harvest were above expectations despite fear of rain damage. Standard wheat with 12 percent protein content for September delivery was offered for sale unchanged at 1 euro under the Paris December contract. Buyers were seeking 2 euros under Paris. Germany's wheat harvesting is underway in the southern states of Baden-Wuerttemberg and Bavaria, which suffered the most from summer rain which threatens quality. Work is gradually spreading northwards but has been delayed by showers. Germany continues to face showers up to Sunday which could delay the spread of the harvest to more central and northern regions, traders added.