European wheat futures were little changed on Tuesday as US prices fell after weather-fuelled gains on Monday, while traders waited for clearer indications about the French harvest after rain raised fears of reduced quality. December milling wheat, the most active contract on the Paris-based Euronext exchange, settled 0.25 euros down at 187 euros ($213.9) a tonne.
The contract was holding near an 18-month high of 189 euros struck last week as the prospect of severe weather damage to US spring wheat continued to underpin international prices. In France, traders and analysts were assessing the potential consequences of heavy showers since Sunday, which could reduce the quality of crops yet to be harvested. "It now seems likely we'll have a harvest of two halves: one with satisfactory quality from before the wet weather, and another with lower quality after the rain," a French cash broker said.
A feed wheat market was starting to develop in La Pallice alongside the traditional milling wheat market in the Atlantic coast export hub, the broker added. Harvest reports also suggested that yields would vary widely after erratic weather including drought, heatwaves and spring frosts. "We're seeing sharp differences in yields, sometimes within a single plot," said Michel Portier, head of consultancy Agritel. "Yields can go from 6.5 tonnes to 10 tonnes per hectare on the same farm." France's farm ministry on Monday estimated production at 36.2 million tonnes up 31 percent from last year's weather-ravaged harvest but with estimated national yields of 7.04 tonnes per hectare limited by adverse weather.
German cash premiums for high protein wheat in Hamburg remained well above bread wheat on hopes heatwave damage to the US spring wheat harvest will mean US export customers will buy more wheat in Germany. High-quality wheat with 14 percent protein content for September/December delivery in Hamburg was offered for sale at an unchanged premium of 22-23 euros over Paris December. This was again far above standard bread wheat with 12 percent protein content, offered for sale at an unchanged 4 euros below the Paris December contract for September delivery in Hamburg.