EU wheat lower on ample global supplies

European wheat prices edged lower on Thursday, pressured by ample global supplies, but the fall was limited by lasting concerns of logistical problems caused by rail strikes in France. May milling wheat on Paris-based Euronext was 0.3 percent lower by 1539 GMT at 166.00 euros a tonne after hitting a one-week low of 165.25 euros earlier in the day.
By the same time, the most-active wheat futures contract on the Chicago Board of Trade (CBOT) was down 1.7 percent. The US Department of Agriculture raised its forecast of world 2017-18 wheat ending stocks to a record 271.2 million tonnes. Rain forecasts in the central US plains and sharply rising temperatures for the Midwest added further pressure to CBOT wheat futures.
"There is bearish pressure from Chicago but rail strikes in France remain a concern," a trader said. Unions protesting against the government's rail reform plans have proposed on-off stoppages until June, a period that covers the end of the grain marketing season. In Germany, cash market milling wheat premiums in Hamburg were flat as feed wheat rather than exports remained the main focus.
Standard bread wheat with 12 percent protein content for April delivery in Hamburg was offered for sale unchanged at 3.0 euros over Paris May. Feed wheat prices in Germany's South Oldenburg market were again over milling wheat, with April onwards delivery offered for sale down 1 euro at 178 euros a tonne and buyers seeking 177 euros.
"There have been recent sales of German feed wheat to buyers in Britain and Spain, which is supportive along with steady wheat demand from German feed makers," one German trader said. There is also market attention on spring sowings, especially important after poor autumn weather hindered autumn plantings in Germany.
"Spring wheat sowings have been considerably delayed by rain in much of the country," another trader said. "Good progress was made in better weather this week but I think this weekend will be the end of the period in which spring wheat can be planted." "If spring wheat sowings are not finished by this weekend, I think farmers will have to plant maize instead."