LONDON: European wheat prices were slightly lower on Tuesday after a rise in the euro against the dollar added to concerns about the sluggish pace of exports.
Benchmark December milling wheat on Paris-based Euronext closed 0.25 euros down at 201.75 euros a tonne in thin trade, with many international traders at a conference in Geneva.
The euro and sterling both firmed after the European Union and Britain agreed a draft text of a Brexit withdrawal agreement.
EU soft wheat exports in the 2018/19 season that started on July 1 had reached 5.9 million tonnes by Nov. 11, down 24 percent from 7.8 million tonnes at the same stage last season, European Commission data showed on Monday.
A pick-up in exports is expected later in the season when supplies from Russia become more scarce and less competitive while crop problems in Argentina could also boost the outlook.
Expected rainfall in Argentina will hit wheat crop quality and are expected to delay shipments this month, which could benefit French wheat as part of Algeria's tender for December delivery.
"As yet there is only a hope of higher exports: the hard data still show that EU soft wheat exports, on a cumulative basis since the start of the 2018/19 season, are still 24 percent down on the already disappointing previous year," Commerzbank said in a market note.
Prospects of more dynamic demand later in the season has lead to grain retention from French farmers, who have already sold 60-70 percent of their harvest, brokers said.
May feed wheat futures in London ended down 1.65 pounds, or 0.95 percent, at 171.50 pounds a tonne.
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