HAMBURG: European wheat futures in Paris fell on Monday, pushed down by a sharp fall in US markets and selling pressure after EU prices hit near four-week highs last week. But Paris prices reduced earlier losses after Algeria issued a new tender for wheat, with EU supplies seen as having a good chance of winning.
Chicago wheat fell 2.1% on Monday, pulling back from highs hit before Christmas. Benchmark March milling wheat on the Paris-based Euronext unofficially closed down 0.4%, or 1.0 euro, at 210.75 euros ($257.3) a tonne after earlier dropping to 208.25 euros.
"There is some profit taking after last week's rise which was maybe not justified," a trader said. Paris falls were also limited by reduced forecasts for Russian exports.
In Germany, premiums in Hamburg were again supported by continued export loadings in ports. Traders were relieved the Brexit trade agreement will prevent disruption to Germany's large wheat exports to Britain.
Standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at around 5.0 euros over Paris March.
"Russian wheat prices are rising ahead of Russia's export tax in February, which is positive for EU export prospects," one German trader said.
Ship loadings in German ports continue this week, including two ships each with about 30,000 tonnes for Algeria, another vessel is to load 30,000 tonnes for Morocco in January.
A ship is also set to sail with about 4,500 tonnes for Britain, part of about 50,000 tonnes of wheat shipped from Germany to the United Kingdom in December.
"There is great relief that the Brexit deal will apparently avoid quotas or import duties on German wheat exports to Britain," the trader said. "But it looks like a lot of expensive paperwork for wheat shipment to Britain could be on the way."
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