EU wheat falls as slack demand continues to weigh

PARIS: European wheat prices fell on Monday with the front-month shedding 2% on a lack of demand while new crop prices were pressured by favourable crop weather in the northern hemisphere.

May milling wheat on Paris-based Euronext, the last available contract for the current 2020/21 season, was down 2% by 1612 GMT to 210.50 euros a tonne.

It had hit a contract high of 236.00 euros a tonne on Jan. 19, boosted by strong demand, notably from China, and Russia's proposed export taxes, aimed at cooling food inflation, that had pushed up prices of both Russian and other origins wheat seen in contention to take demand from Russia.

Demand remained thin with no tenders currently open that could attract European wheat, another trader said.

Concern also grew about Chinese demand as fresh cases of African swine fever in recent months have cast doubts on the country's pork production.

New crop September was down 0.5% at 194.00 euros a tonne, also pressured by good harvest prospects.

In France, soft wheat growing conditions remained favourable, with the latest data showing 87% of crops rated good or excellent.

Russian wheat export prices fell sharply last week - extending their fall to the fourth consecutive week.