EU wheat edges down

Paris wheat futures closed slightly lower on Thursday after a subdued session in which a sale of French wheat to Egypt failed to stir a market weighed down by large stocks and favourable crop conditions. German cash premiums however were again supported by firm demand meeting limited farmer selling. May milling wheat on the Paris-based Euronext futures market settled 0.5 euro, or 0.3 percent, lower at 153.25 euros a tonne, to trade near a contract low of 151.00 euros.
European prices were again pressured by Chicago futures, which fell for a fourth session in a row as tepid US exports and decent crop ratings reinforced bearish sentiment. "The market is very, very slow and people are already waiting for the next USDA report for some impetus," one futures dealer said, referring to monthly US Department of Agriculture world crop forecasts due on April 12.
A purchase of 60,000 tonnes of French wheat by Egypt, the world's biggest wheat importer, drew little reaction as traders were still focused on the prospect of large end-of-season stocks in France and worldwide. Reporting quarterly results, global trading firm Cargill said large grain stocks may keep market prices and volatility low in the near term. The European Union granted export licences for 467,000 tonnes of soft wheat this week, leaving the total since the beginning of the 2015/16 season 12 percent below the year-earlier level, official data showed on Thursday.
In Hamburg, standard wheat with 12 percent protein content for April delivery was offered for sale at 3 euros over the Paris May contract against 2.50 euros over on Wednesday. Buyers were seeking 2 euros over Paris. "There are more buyers than sellers in parts of the north German market today, with farmers either unhappy about the low level of outright prices compared to late last year or they are busy sowing spring grains and are not marketing their old crop," one German trader said. Export-loading activity in Germany remained brisk and there were also hopes that German wheat would fill part of a purchase made by Ethiopia this week.