European wheat futures eased slightly on Friday, with a weaker trend in Chicago countered by export demand that continues to support the market. May milling wheat, the most active contract on the Paris-based Euronext exchange, was down 0.25 euros, or 0.1 percent, at 174.75 euros a tonne by 1726 GMT. The contract was on track for a weekly gain of 0.4 percent.
Closely watched US Department of Agriculture (USDA) planting estimates on Thursday had confirmed expectations for a sharp drop in wheat acreage and a shift from corn to soybeans, while initial 2017/18 US production and stocks forecasts released by the USDA on Friday were seen as too tentative to sway markets. "There's nothing much new fundamentally and no major weather upset for now," one futures dealer said.
"The USDA's planting estimates were more or less in keeping with market expectations and people weren't too interested in the supply and demand outlook." Traders noted an increase in loading activity at France's Rouen port, including several cargoes due to load wheat for Algeria, suggesting that France had continued to pick up export sales despite a limited surplus after last year's poor harvest. Expectations of new export sales helped to underpin prices in Germany.
"Hopes remain that we will see new German export sales to buyers such as Saudi Arabia and Africa, but Poland is also making larger export sales this season in competition with Germany," one German trader said. Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at an unchanged premium of 4 euros over the Paris May contract. Buyers were seeking 3 euros over.
There was relief as widespread rain caused water levels on the Rhine and Danube rivers to rise, easing transport problems as freight vessels are again able to sail fully loaded. Feed wheat futures in London were lower, with May down 1.25 pounds, or 0.85 percent, at 145.75 pounds a tonne. Dealers noted a slowdown in exports and pick-up in imports had eased concerns of tight supplies.
"Given the current rate of imports of both wheat and maize, the UK's balance sheet now looks more comfortable," said David Sheppard, managing director of merchant Gleadell. Spot rapeseed futures on Euronext extended their pullback from a contract high this month, falling for a seventh straight session. Down 1.75 euros at 411.25 euros, against a recent high of 427.25 euros, the contract was facing technical selling pressure that outweighed a bounce for Chicago soybeans on Friday, traders said.