European wheat futures down to 2-week lows

HAMBURG: European wheat futures fell on Tuesday to near two-week lows, pressured by a pullback in US and Russian prices and slack demand in France.

Benchmark December milling wheat on the Paris-based Euronext unofficially closed down 1.75 euros or 0.9% at 187.00 euros ($221.50) a tonne, after earlier touching its lowest since Sept. 2 at 186.50 euros.

A retreat from last week's 3-1/2 month high of 191 euros accelerated as Chicago futures fell and the Euronext benchmark breached resistance at 188.50 euros.

Falling Russian export prices also weighed.

"Sooner or later, Russian producers will switch to selling and international buyers (will switch) to southern hemisphere wheat," consultancy Agritel said. "This turning point needs to be monitored."

France's small crop curbed French export activity. Traders noted there were no wheat cargoes loading or scheduled at the start of the week at France's main grain export hub of Rouen.

In Poland, a lack of farmer selling coupled with a continued good flow of export shipments lent support.

Export prices for 12.5% protein wheat rose by 5 zloty on the week to around 785 zloty (176.5 euros) a tonne for September delivery to ports.

"Saudi Arabia's large purchase of 745,000 tonnes of wheat on Monday did not have an impact on prices today, but we expect a good portion of the Saudi tender will be delivered from Poland," one Polish trader said.

Prices paid by Saudi Arabia were regarded as low with the Baltic States also expected to win part of the business.

"I estimate Poland exported 170,000 tonnes of wheat by sea in July-August 2020, up from just over 100,000 tonnes the same time last year," the trader said.