European new crop wheat prices dipped on Tuesday, following US markets, as traders said there were no new elements to give clear direction. "There is a lack of appetite with no export demand. The market is waiting for new elements to make a decision," a European trader said.
European new crop benchmark November was 0.75 euro or 0.35 percent lower by 1215 GMT at 213.25 euros a tonne in thin volumes. Traders and analysts said the market was torn between bullish concern about dry weather in Northern Europe and the fall on US markets.
"There is nothing our end so we are looking at the US," another European trader said. In electronic trade in Chicago, wheat for July delivery was down 0.6 percent to $7.87 per bushel. Germany's market was also weaker, pushed down by the fall in Paris coupled with lack of purchase interest, but with concern about lack of rain in Germany limiting falls.
Standard old crop bread-quality wheat for May and later delivery in Hamburg was offered for sale down two euros at 255 euros a tonne with buyers offering around 252 euros. Germany is forecast to be mostly dry on Tuesday but showers are forecast for north German regions on Wednesday, followed by dry and hot weather for most of Germany until Saturday night.
"The key question now is whether this rain will be enough," one trader said. "There is still the possibility of a good crop this year but concern is growing by the day." North and north-east Germany, key wheat producing regions for the export market, have received little significant rain since early April.
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