EU wheat falls to seven-week low on poor exports

European wheat prices fell to a seven-week low on Thursday after the release of bearish weekly export data in a move exaggerated by technical factors, traders said. May milling wheat on Paris-based Euronext, settled at 167.25 euros a tonne, down 0.9 percent on the day, after trading at 167 euros, a low since February 1. Traders said the market had tested a technical gap between 166.50 and 167.00 euros per tonne marked at the open on December 8.
"The idea was to go and fill the small gap, which would allow a rebound thereafter," a Euronext trader said. The EU exported a meagre 98,000 tonnes of soft wheat in the week to March 21, with the total this season now running 16 percent behind last season. The market was nevertheless supported by some buying interest, notably from industrial players, at current price levels seen as competitive, traders said.
German cash market premiums in Hamburg were flat, with the euro's strength this week depressing the export outlook. Standard wheat with 12 percent protein content for April delivery in Hamburg was offered for sale unchanged at 3.5 euros over the Paris May contract. Buyers were seeking 2.5 euros over. Polish prices fell because of weaker export demand and lower Paris prices. Export prices for 12.5 percent protein wheat for April delivery to port silos fell by 10-15 zloty a tonne in the last week to between 740-745 zloty a tonne (173.6-174.7 euros).
"Exporters slowed down their purchases," one trader said. "Exchange rate movements were unhelpful. "In April lower wheat exports are expected out of Poland. Two vessels with 42,000 tonnes are now loading in Gdynia and no other wheat vessels in the port line up so far." One vessel has just left Gdynia with 45,000 tonnes of wheat for Las Palmas, one with 31,000 tonnes wheat left Gdynia for Port Said in Egypt and other sailed with 25,000 tonnes for Haiti in the Caribbean, traders said.
Polish millers have slowed purchases after recent bargain-buying with mills seen with good supply cover up to late April. Domestic prices for 12.5 percent protein wheat dropped 15 zloty in the last week to 680-730 zloty a tonne depending on the region for March/April delivery.