European wheat prices dipped on Friday after hitting a six-month high in the previous session, pressured by falling US markets. Benchmark March milling wheat on Paris-based Euronext, was down 0.5% by 1640 GMT to 188.50 euros a tonne. It had risen as high as 190.75 euros on Thursday, its highest level since June 28.
"Today's fall is mainly a technical reprieve, the market remains bullish with many supportive elements on the supply side," a trader said, pointing notably to adverse crop weather in the United States and the Black Sea as well as drought and fires on Australia's east coast.
In Chicago, the most active wheat contract on the Chicago Board of Trade was down 1% at $5.54-3/4 a bushel. Wheat retreated as traders booked profit after a sharp rise in recent weeks on declining conditions of the US winter crop.
In Germany, cash premiums in Hamburg remained firm, holding above Euronext levels as the large programme of ship loadings in German ports seen in late 2019 continued into January. Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale at 5 euros over the Paris March contract. Buyers were offering up to 4 euros over Paris.
"December was very busy for wheat export loadings in Germany and the ship loading activity is continuing in January to a wide range of destinations especially in Africa," one German trader said. "Support is also coming from a lack of selling interest with the market still not yet back to full speed after the holiday period."
Ships sailing with wheat from Germany in the first days of January included two vessels each with about 50,000 tonnes for South Africa, one with 40,000 tonnes for Kenya, one with 30,000 tonnes for Morocco and one with 10,000 tonnes for Iran booked last year. "The vessel for Iran is only a small shipment but Iranian buying in Germany has been rare for a couple of years," another trader said.
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