Paris wheat falls after US supplies offered cheapest in Egyptian tender

HAMBURG: European wheat futures fell in Paris on Tuesday after offers in Egypt's international purchase tender showed that French wheat was more costly than US and Romanian supplies, traders said.

Benchmark May milling wheat on the Paris-based Euronext exchange was down 0.75 euros, or 0.4 percent, at 188.75 euros ($213.02) a tonne at 1656 GMT.

The contract had risen to a one-month high of 191 euros in early trade, tracking strength in US wheat in Chicago.

Paris new-crop September wheat was unchanged at 178.75 euros after rising as high as 180.25 euros, its highest since Feb. 22.

US-origin wheat was offered at the lowest C&F price including shipping costs in Tuesday's international purchase tender from Egypt's state grains buyer GASC.

Romanian wheat was second-cheapest, dimming the outlook for a French sale. Freight costs had hurt French offers. US wheat was reportedly purchased in the tender.

Traders noted that the new 180-day payment delay had forced exporters to include a price premium in their offers to cover the cost of financing deferred payment.

In Germany, cash premiums in Hamburg were slightly firmer in largely technical moves with the nearby delivery date transferred from March to April.

Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale at about 6.50 euros over Paris May, up 0.50 euros.

"There is a steady German wheat export programme with ships being loaded constantly," one German trader said. "This is supportive but it's generally old business, so it is mainly already purchased by exporters."

Two ships sailed from Germany last week with about 55,000 and 50,000 tonnes of wheat for South Africa, he said. Other wheat shipments from Germany in the past week included 71,000 tonnes for Saudi Arabia and 45,000 tonnes for Kenya.

Feed wheat remained above milling wheat, continuing a pattern seen in previous months after last summer's drought damaged German fodder crops.

Feed wheat in the South Oldenburg market for April/June delivery was offered for sale at about 202 euros a tonne, with buyers seeking 201 euros.