HAMBURG: European wheat futures fell on Monday as signs of a lull in demand and a cautious mood before US government crop forecasts encouraged the market to consolidate below a 13-year peak hit last week.
March milling wheat, the most active contract on Paris-based Euronext, unofficially closed down 3.75 euros, or 1.3%, at 279.00 euros ($322.36) a tonne.
It earlier slipped to a one-week low of 278.25 euros, moving away from last Tuesday’s peak of 289.50 euros, the highest for a second-month position since March 2008.
A firm euro also curbed Euronext prices.
Grain markets were looking ahead to the US Department of Agriculture’s (USDA) November world crop report on Tuesday for fresh direction.
“There’s a little drop-off in demand and some profit-taking before the USDA report,” one French trader said.
European traders were also watching to see if key customer Algeria would issue a tender for December shipment.
In France, talk that Ukrainian wheat was taking a large share of initial purchases by Moroccan buyers in the country’s import season that opened on Nov. 1 was also tempering export sentiment, traders said.
In Germany, traders said that export shipments were slowing in November after very large loadings earlier in the autumn.
“Demand in the tender market is also looking slower this week after big purchases by Saudi Arabia and Egypt last week, with buyers likely to be deterred by prices that remain high,” one German trader said. “Germany’s export shipments have made a slow start in November.”
Ships that loaded or are scheduled to load wheat in Germany in November include 30,000 tonnes for Algeria, 50,000 tonnes for Nigeria, 30,000 tonnes for Guinea, 7,500 tonnes for Angola and 4,500 tonnes for Mauritius.
Standard 12% protein wheat for November delivery in Hamburg was offered for sale at about 2.50 euros below Paris December.
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