LONDON: European wheat prices fell to a three-week low on Friday, dragged down by weakness in Chicago prices as rains were forecast for dry parts of the US Plains.
Dealers said the mood on exports in western Europe had also become more bearish after Egypt's state grain buyer, GASC, rejected offers of French wheat at a tender on Thursday.
"There had been hopes that Russia's 50 euro a tonne export tax would transfer export sales to the west EU, but this looks like being a harder struggle than expected," one German trader said. "Russia is not out of the export game yet."
The cheapest French offer in the GASC tender on Thursday of $290.97 a tonne FOB was still undercut by Russian FOB offers of $287.00 to $289.90 a tonne which included the 50 euro ($59.6) a tonne export tax.
"A total of 350,000 tonnes of Russian wheat was offered in the GASC tender so significant volumes of pretty cheap Russian wheat are obviously still available for export which is also bad news for the west EU," the trader added.
Front month May milling wheat on Paris-based Euronext ended 0.6% lower at 223.25 euros a tonne after hitting a three-week low of 223 euros a tonne.
In Germany, a brisk ship loading programme continued to support premiums in export ports, with another vessel set to load 30,000 tonnes of German wheat for Algeria in coming days.
Four other ships have each loaded 30,000 tonnes for Algeria from Germany so far in March, with Algeria shaping up to become Germany's largest wheat export customer this season.
Other ships loading include 60,000 tonnes of German wheat for Iran and 30,000 tonnes for Guinea, also continuing a strong flow of German shipments to sub-Saharan Africa.
Standard 12% protein wheat for March delivery in Hamburg was offered for sale unchanged at around 6 euros over Paris May.
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