Euronext wheat futures were little changed on Monday in keeping with a subdued trend in Chicago as traders weighed weather risks while awaiting world crop forecasts from the US government. December milling wheat on Paris-based Euronext was down 0.50 euro, or 0.3 percent, at 185.50 euros ($219.00) a tonne at 1528 GMT.
Attention on grain markets was turning to Tuesday's world crop report from the US Department of Agriculture, with market participants watching to see how the agency would factor in dry weather in several wheat-exporting countries. A rise in the euro against the dollar also restrained Euronext prices.
Storms and heavy rain in France were underpinning the market by causing uncertainty about crop quality in this summer's harvest, traders said. "The weather conditions are pointing towards more yield and less quality. This quality risk is putting a firm brake on sales," a French physical broker said.
Grain lobby Coceral on cut its forecast for 2018 European Union soft wheat production to 138.8 million tonnes from 140.5 million in March, as dry weather worsened the outlook for countries such as Germany and outweighed increased prospects in France and Spain. In Germany, cash market premiums in Hamburg were supported by dry weather threatening northern and eastern export zones.
New crop standard bread wheat for September delivery in Hamburg was offered for sale at 2 euros over Paris December against 0.5 euro on Friday. "Germany had quite a lot of rain over the weekend but it fell in the south and centre of the country and not in the north and north-east regions which need rain," one German trader said.
"There has been a sharp reduction in farmer selling today as worries intensify about the harvest being damaged by dryness." In Poland, concern about dryness also supported prices. "The regions of Western Pomerania and Lebusz close to the German border in central/northern Poland have been very dry with high temperatures in the past week," one Polish trader said.
"So some lower yields seem to be already a fact in parts of Poland, which is supporting markets." Exporter purchase prices for 12.5 percent protein content wheat for June delivery to ports rose 10 zloty on the week to 735 zloty a tonne, with sellers seeking 740 zloty. Polish mills increased their purchasing prices for 12.5 percent protein wheat for June delivery by 10-15 zloty a tonne on the week, paying 685-720 zloty (160.4-168.6) euros a tonne depending on region.
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