PARIS: European wheat prices edged lower in thin trade on Monday, pressured by a fall on US markets, welcome rainfall in northern Europe and a strong euro that was hampering the competitiveness of the region's grain on world markets.
The front month September milling wheat contract on Paris-based Euronext fell 0.4% to 186.00 euros ($210.2) a tonne.
"The lack of buyer interest on the domestic and export markets and the selling pressure of funds on Euronext compensate the various climatic concerns among major producers in the northern hemisphere," French consultancy Agritel said in a note.
"In Europe, the recent rainfall, although very heterogeneous, is beneficial and should help stabilise the production potential," it said.
Rain in Europe last week has brought relief to parched wheat belts but more moisture is needed to prevent this summer's harvest shrinking further, analysts said.
Polish grain prices fell in the past week on lower demand and improving new crop prospects after rain.
Exporter purchase offers for Polish 12.5% protein wheat fell around 15 zloty on the week to about 825 zloty a tonne (186 euros) for June delivery to ports.
Polish millers followed the exporters and reduced purchase offers for 12.5% protein wheat to 780-820 zloty a tonne according to traders in Poland, down 10-20 zloty on the week.
"Uncertainty about the demand after the coronavirus crisis means millers seem to be holding back from making big wheat purchases," one Polish trader said.
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