European wheat fell on Monday following a slump on US markets and global financial markets as a jump in coronavirus cases outside China fuelled global growth worries. Benchmark May milling wheat on Paris-based Euronext, closed at 189.50 euros a tonne, down 1.7%, after hitting 189.00 euros earlier in the session, its lowest level since February 3.

One trader put the next support at 188.50 euros a tonne. "The slump on financial markets on fears of a spread of the coronavirus is having an impact on our markets," one grain trader said, stressing that the virus was uncontrollable for the moment.

"What financial markets most hate is that it lasts in time." Italy, South Korea and Iran reported sharp rises in coronavirus cases on Monday, triggering big falls in global share markets as investors fled to safe havens. European share markets suffered their biggest slump since mid-2016, gold soared to a seven-year high, oil tumbled nearly 5%.

In Germany, wheat cash premiums in Hamburg were underpinned by hopes of new export business, especially after traditional German wheat customer Saudi Arabia bought 715,000 tonnes of wheat in a tender on Monday. Saudi state grains buyer SAGO bought 12 consignments with the seller having the option of selecting the origin supplied. One 11% protein content wheat consignment is expected by German traders to be sourced in France.

"I think about four or five consignments of 12.5% protein wheat will be sourced in Poland and the rest in Germany," one German trader said. "A lot depends on whether exporters decide to try supplying Russian wheat to Saudi Arabia."

"Although Saudi tenders have been open to Russian wheat since last summer, exporters have been pretty reluctant to offer supplies from Russia as the Saudi quality specifications are still high and there are fears of losses from shipment rejections. Standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at 5.0 euros over the Paris May contract. Buyers were offering up to 3.0 euros over Paris.