HAMBURG: European wheat futures in Paris fell to a new five-week low on Monday as waning end-of-season export demand and a favourable outlook for northern hemisphere harvests hung over the market.
Front-month May milling wheat on the Paris-based Euronext exchange was down 1.25 euros, or 0.6%, at 218.50 euros ($260.32) a tonne at 1406 GMT.
It earlier touched its lowest since Feb. 12 at 218.25 euros, just below a previous five-week low touched on Friday.
New-crop September wheat on Euronext was down 0.8% at 196.25 euros, after hitting a fresh five-week low of 195.75 euros.
After a recent rally in front-month Euronext futures to their highest since 2013, signs of slowing export demand with few purchase tenders visible and good growing conditions for the next harvest have cooled prices.
“High prices have curbed purchasing interest,” a French trader said. “Attention is increasingly turning towards the new crop.”
The wheat market was also seen as lacking impetus given the current focus in grain markets on corn and soybeans in the wake of large Chinese purchases of US corn and ahead of US spring planting estimates next week.
In Germany, traders were also disappointed at slow export demand.
“Port loadings are busy in Germany but the outlook for new sales is not encouraging,” one German trader said. “The international tender market is looking very quiet with buyers absent as the week starts.”
“I think we need more purchase interest from the big three buyers Saudi Arabia, Egypt and Algeria but they are all absent today. High ocean shipping costs are also depressing importer interest.”
Standard 12% protein wheat for March delivery in Hamburg was offered for sale down 1 euro on Friday at around 7 euros over Paris May.
Attention was turning to April delivery, offered at 8 euros over Paris May.