PARIS: European wheat prices fell to a near 9-month low on Monday in a broad selloff with traders now awaiting results of Algeria's tender in the hope it could further boost demand.
Benchmark May milling wheat on Paris-based Euronext, unofficially closed 1.5 percent lower at 181 euros a tonne, after breaking the support of 182 euros. This was the lowest level since June 19 last year.
The weak opening of US wheat futures accelerated the fall in Europe in afternoon trade.
It was the last trading day for front month March.
On the French cash market premiums were stable, supported by Algeria's return to buy milling wheat to from optional origins for shipment on April 16-30 and May 1-15.
Traders will be watching whether Algiers purchases its usual monthly volume of around 500,000 tonnes, or if it does some protection buying in light of the political tensions in the country.
This would further support a good export pace in French ports, mainly to Africa and Yemen. A third vessel was also due to call at Dunkirk next week to load the first cargoes of French wheat for Egypt this season.
In Germany, cash premiums in Hamburg showed a widening gap between buyers and sellers in slow demand.
Standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale unchanged at around 7.0 euros over Paris May. But sellers were seeking around 4 euros over against around 5 euros over on Friday.
"Markets lack spark with exports steady but not enough to simulate the mood," one German trader said. "The main hope this week is that Algeria is tendering again and a large French sale could liven the markets up."
A warm weekend in Germany was followed by forecasts of welcome rain and mild temperatures for the rest of this week, continuing a positive new crop picture.
"The current crop situation is good and I think the chances wheat in Germany will come through the winter without major frost damage are rising every day," the trader said. "This is removing another incentive for consumers to buy."
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