European wheat prices fall on strong euro

European wheat prices dipped on Wednesday, still under pressure from the euro's rise against the dollar, hampering its competitiveness on the world market, but firmer US futures supported prices, traders said. December milling wheat on Paris-based Euronext, was 0.15 percent lower at 162.75 euros a tonne after falling 1.8 percent the previous day. CME Group's December EU wheat contract rose 0.9 percent to 176.50 euros a tonne, still supported by strong demand for German wheat.
"US and European markets are still moving in a narrow range and without a clear direction," a trader said, adding there were few new weather factors to change the trend. A delay in the Canadian harvest and frost damage in Australia were already priced in, he said. Euronext's wheat futures, whose delivery are port-based as opposed to CME's inland delivery points, continued to suffer from a lack of export demand for French wheat after a poor harvest this summer.
There were no shipments loading or awaited in Rouen, France's largest grain export hub, on Wednesday, with the last wheat shipment dating from October 12. In contrast a new cargo of UK wheat was announced to unload around 3,000 tonnes. In Germany, cash market premiums in Hamburg were underpinned by more purchasing interest after the sharp fall in Paris on Tuesday.
Standard wheat with 12 percent protein content for November delivery in Hamburg was offered for sale unchanged at 4 euros over the Paris December contract. Buyers sought 3.50 euros over. In Poland, prices have been supported in the past week by a lack of farmer selling because of dissatisfaction with current prices and robust export demand.
"Exports are going on at high speed," a Polish trader said. "I estimate that in October around 350,000 tonnes of wheat was exported from Poland and in November we expect around 250,000 tonnes." Exporters increased purchase prices for 12.5 percent protein wheat for November delivery to port silos by 5 zlotys to 700 zloty (162.1 euros) a tonne. In the internal market, mills increased purchase offers for 12.5 percent protein wheat for November delivery by 10 zlotys on the week to 600-650 zlotys a tonne depending on region.