Fall in Chicago pulls EU wheat lower, euro rebound weighs

PARIS: A fall in Chicago prices dragged European wheat lower on Monday, while traders also said the euro's rebound against the dollar hampered its competitiveness on world markets.

Export prospects for the final weeks of the 2018/19 season have been tempered by competition from the United States in Algeria, France's main overseas market, and the rejection of a French wheat cargo by Egypt, one of the world's main importer.

The cargo was since re-tested and accepted.

Benchmark May milling wheat on Paris-based Euronext, was down 0.25 euro or 0.1 percent by 1610 GMT to 189.00 euros a tonne. But export flows have supported European prices this month and the contract has gained 1.8 percent since April 1.

The pace of EU exports have accelerated in recent weeks and are now only 1 percent down on last season, compared with 11 percent in mid-March, official data showed on Monday.

French wheat exports this month reached 945,000 tonnes by April 15, a Refinitiv calculation based on port data showed.

"We knew that April would be active in terms of exports but there is a lot of uncertainty about exports in June," a trader said.

Grain marketing seasons in Europe spread from early July to late June of the following year.

New crop September was also 0.25 euro lower at 176.75 euros a tonne.

There was little concern about damage in France from very cold temperatures over the weekend but traders continued to monitor dry weather conditions.