PARIS: European wheat prices fell on Monday in the wake of US markets and pressured by a penalising rate of the euro against the dollar just as harvests are gathering pace in France and hefty crops are expected in the Black Sea region.
December milling wheat on Paris-based Euronext, unofficially closed 0.7 percent lower at 179.50 euros a tonne, in its 179-180 euro support zone.
Dry weather allowed field work to reach wheat fields in the northern part of France over the weekend but heavy rainfall delayed harvests in Germany.
Initial results in France confirmed heterogeneous yields but good quality levels including protein levels and milling criteria such as specific weight and Hagberg falling numbers.
However, showers were forecast in many parts of the country from Wednesday.
"Weekend fieldwork was rather reassuring. Recent rainfall had little impact on quality but now it's a race against time before it's starts raining again," a broker said.
Brokers reported quality damage in the region around the Atlantic port of La Pallice where crops were hit by rainfall when grains were ripe, with an estimated 20 percent of the wheat to be classified as feed wheat.
In Russia, harvests were delayed by rainfall but results were still pointing to hefty supplies. IKAR agriculture consultancy on Monday raised its forecast for Russia's 2017 wheat crop forecast by 1 million tonnes to 71-75 million.
German cash premiums in Hamburg were little changed with the focus on Germany's wheat harvest also delayed by repeated rain.
Standard bread wheat with 12 percent protein content was offered for sale unchanged at 2 euros under the Paris December contract for September delivery in Hamburg.
"We had a wet weekend with heavy rain in some east German areas and harvesting has stopped again in the southern and central areas where initial work has started," one German trader said.
"Rain is again forecast in much of Germany this week so we are likely to see interruption to harvesting again."
The late rain continues to cause concern about late quality damage, especially loss of protein in German wheat.
"It is too early to make any real assessment of wheat quality," another trader said. "I personally think that protein levels will be satisfactory and high protein export supplies will be large enough to meet expected demand.
High quality wheat with 14 percent protein content was again offered for sale well over milling wheat, with September/December delivery in Hamburg offered for sale at an unchanged premium of 22-23 euros over Paris December.
German traders hope that weather damage to the US spring wheat crop will push demand for high protein grades to Germany.
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