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Markets

EU wheat pushed down by overnight fall in US prices

Published Updated

wheat-HAMBURG: European wheat prices dropped on Tuesday, pushed down by a 2 percent fall in Chicago futures on Monday, when European markets were closed for the Easter holidays.

May milling wheat  on the Paris-based Euronext futures was down 0.7 percent or 1.25 euro at 164.50 euros a tonne at 1603 GMT.

The fall in Paris was limited by good export flows of French wheat. Data showed a long list of cargoes loading or awaited in French ports to load wheat for countries such as Morocco, Algeria - for both state and private buyers - and Cuba.

A ship was also expected on Wednesday in the port of Rouen to load a first shipment of feed wheat for South Korea.

As of April 18, France had shipped nearly 500,000 tonnes of wheat outside the European Union, the highest level since August.

Paris new crop prices were also lower, with December down 0.8 percent or 1.5 euros at 173.75 euros a tonne, but with some background support from weather concern.

A soil water deficit accumulated in dry weather in France and elsewhere following dry weather since last autumn along with lower temperatures continue to provide background support, French consultancy Agritel said in a note.

Forecaster Meteo France said the water deficit since September was often higher than 25 percent in the northern half of the country, which includes the largest grain producing regions.

In Germany, cash market premiums in Hamburg were little changed, with the market taking a relaxed view of frosts forecast in much of Germany this week.

Standard wheat with 12 percent protein content for April delivery in Hamburg was offered for sale unchanged at 6.5 euros over the Paris May contract. Buyers were seeking 5 euros over.

Widespread frost is forecast in Germany between Tuesday and Friday following a mostly frost-free period in March and early April as the winter comes to a close.

"The frosts will be watched closely but the market seems to be unperturbed by the forecasts of cold weather," one German trader said. "The impression is that wheat will not be endangered by the lower temperatures forecast and also that rapeseed can take a lot of cold weather before damage."

"We will have to see how low temperatures actually fall."

 

 

Copyright Reuters, 2017
 

 

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