Euronext wheat futures eased on Monday, with the benchmark contract hitting a two-week low as weaker US prices and slow exports weighed on a market otherwise lacking clear direction. Volumes were light, with grain markets assessing evolving weather conditions in big-producing countries and looking ahead to Thursday's monthly supply and demand outlook from the US Department of Agriculture (USDA) for further indications.
December milling wheat on Paris-based Euronext was down 1 euro, or 0.6 percent, at 164.25 euros ($192.86) a tonne by 1547 GMT. It had touched 164 euros, the lowest level since September 25. Next chart support was put at 163.25-163.50 euros. Global benchmark Chicago wheat was also lower, with traders citing beneficial rain for US winter wheat belts.
"The bit of selling pressure we're seeing reflects a complicated context for European wheat - the euro has not managed to extend its fall, Chicago has turned lower and exports are still lagging," a Euronext trader said. "There is little new export business to be seen and competition remains strong overseas." A record Russian harvest has stiffened export competition and curbed shipments from western Europe.
Export prospects for western European origins such as France received a boost when the euro fell last week to a 1-1/2 month low against the dollar. But the euro was steady on Monday, offering little impetus. Loading of wheat for export at French ports remained limited, data compiled by Reuters showed. In Germany, export prospects were even weaker after this summer's rain-hit harvest.
"Export demand remains very weak, with the poor quality of Germany's harvest this summer making the outlook for Germany's overseas sales poor in the face of big crops coming out of the Black Sea region," one German trader said. "The main market impulse continues to come from the feed sector rather than exports." Standard bread wheat for October delivery in Hamburg with 12 percent protein was offered for sale at parity with the Paris December contract.