European wheat prices slipped on Monday in the wake of a fall on US markets, pressured by ample global supplies, while new crop prices fell on precipitation forecasts in large EU producing countries. Benchmark May milling wheat on Paris-based Euronext was down 1.25 euro or 0.7 percent by 1545 GMT to 173.50 euros a tonne. New crop September was also 1.50 euro lower at 173.25 euros a tonne.
"The market remains heavy with, today, a steeper fall in Chicago which weighs on Euronext," a Euronext trader said. New crop prices were also lower as conditions were looking positive in top European wheat producers France, Germany and Poland, with welcome rain forecast this week after a dry start to the year, traders said. "Long-awaited rain in France and Germany is easing fears slightly," a French trader said. "February is traditionally the coldest month in Germany but the weather has been generally warm, so expectations are rising that we could come through the winter with an average or below average level of frost damage to crops," a German trader said.
Crop ratings for next season's crop in major producer Ukraine are promising so far, analyst UkrAgroConsult said on Monday, estimating that about 81 percent of Ukrainian winter grain crops were in either good or satisfactory condition as of February 23.
In France, 93 percent of soft wheat crops were in good or excellent condition as of February 20, up slightly from 92 percent a week earlier and 94 percent a year ago, the farm office said on Friday. Brokers noted slow activity on the French cash market despite a pickup in loadings towards North Africa. Most of these shipments were already covered, they said.
German cash market premiums in Hamburg were little changed, with many market participants in central German states absent for the unofficial carnival holidays. Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at an unchanged premium of 4 euros over the Paris May contract, with buyers seeking 3 euros over.
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