European wheat's five weeks decline paused on Monday but pressure from ample supplies remained, notably in the United States where harvest has started. November milling wheat was down 0.25 euro or 0.1 percent at 187.00 euros a tonne by 1521 GMT after rising to 189.25 euros in morning trade. The following contract January was 0.25 euro higher at 188.25 euros per tonne.
Traders put the next support on November at 186.25 euros, the lowest hit last week, a level unseen since February. "The Americans are harvesting and farmers will need to sell so there is some bearish pressure to come," one trader said. Crop prospects remained good in France but operators noted that fields in the eastern part of the country would welcome some rain after some hot weather experienced earlier this month.
Farm office FranceAgriMer cut its crop ratings for soft wheat by two points last week, with 72 percent of crops rated good or excellent as of Monday, June 9. That was still above the 68 percent good/excellent recorded at the same time in 2013. The barley harvest has started in Burgundy and the durum one in south-eastern France.
GERMANY German cash wheat premiums were hardly changed with purchase interest thin. Germany experienced more excellent crop weather, raising hopes for a larger harvest than previously thought. Standard new crop wheat for delivery in Hamburg from September was offered for sale unchanged at 5 euros over the Paris November contract. Buyers offered 4 euros over Paris with early day trade reported at 4.5 euros over. "Crop weather in Germany remains good and expectations of a good crop this summer continue to intensify and buyers are holding out, hoping that prices will fall," one trader said.
Another trader added: "The barley harvest is likely to start around two weeks early at the end of June in south Germany which will in turn weaken demand for feed wheat." "We could even see a start to barley harvesting at the end of this week or early next week in isolated areas along the Rhine."
POLAND Polish wheat prices dropped sharply in the last week due to weak international prices, low export demand and expectations of a large and early crop in the country. "Polish new crop 12 percent protein wheat prices faced a disaster dropping only within a week from 720 zloty a tonne (173.8 euros) delivered ex harvest to mills to between 640 to 650 zloty a tonne (154.5 to 157 euros)," a Polish trader said. "Excellent crop weather during the last week with showers and warm temperatures are supporting expectations of high yields and good quality this year."
Exporters were offering 730 zloty a tonne (176.1 euros or about 188 euros a tonne fob equivalent) for 12.5 percent protein new crop wheat for delivery to Baltic port silos, 30 zloty a tonne (7.2 euros) less than last week. Old crop milling wheat prices fell by 10 to 20 zloty a tonne (2.4 to 4.8 euros) to a wide range between 750 and 780 a tonne (180.9 to 188.2 euros) delivered to mills in June/July.
Exporters lowered their purchase offers for Polish old crop 12.5 percent protein wheat by 15 zloty a tonne (3.6 euros) to 780 zloty a tonne (188.2 euros) delivered to Baltic port silos in June/July for 12.5 protein wheat. "Industry does not want to build up stocks with expensive old crop grain and is buying only in small quantities while more farmers are seeking to sell old crop grain, creating even more downward pressure on prices," another Polish trader said.
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