EU wheat prices fall as weak rouble adds to export woes

EU wheat futures were lower on Wednesday after widely followed US government crop forecasts underlined ample global supplies, while a falling rouble was set to add to the competitiveness of top wheat exporter Russia.
May milling wheat on the Paris-based Euronext exchange unofficially closed 1.00 euro or 0.6 percent lower at 166.50 euros a tonne, retreating from a one-month high of 168.50 euros hit on Monday.
"The USDA report was neutral to bearish for cereals," one futures dealer said.
"There's also the issue of the falling rouble. There had been a bit of retention by Russian farmers, with the exchange rate it makes sense for them to release some grain."
The rouble fell on Wednesday to its lowest levels since 2016 as tensions with the United States over new punitive sanctions and the conflict in Syria eclipsed any benefit from higher oil prices.
FranceAgriMer cut its forecast for French soft wheat exports outside the EU for a sixth month in a row amid unrelenting Russian competition, but raised expected exports within the EU, contributing to a cut in projected stocks.
Logistical problems caused by a rolling rail strikes in France remained a concern and FranceAgriMer said it could disrupt the end of the export season.
The on-off stoppages, which unions plan to pursue for three months in protest against a government rail reform, have led to higher physical premiums in some inland regions.
In Germany, cash market milling wheat premiums in Hamburg were unchanged, with exports slack but regular demand from domestic compound feed producers.
"The export market remains tough, and sales offers for wheat from the Baltic States and Poland are below prices from Germany," one German trader said.
For April/May onwards shipment of 12.5 percent protein wheat, important in the key Saudi Arabian market, Lithuanian wheat was offered at around 7 euros fob over Paris futures and Polish at around 8 euros fob over Paris.
German supplies were more expensive at 9 euros over Paris for April/May shipment, he said.
Standard bread wheat with 12 percent protein content for April delivery was offered for sale unchanged at 3.0 euros over Paris May.
Feed wheat prices in Germany's South Oldenburg market were offered for sale for April onwards delivery up 1.5 euros at 179 euros a tonne with buyers seeking 178 euros.