Euronext wheat futures at two-week low

Euronext wheat futures extended losses on Monday to a two-week low in step with Chicago, as a higher-than-expected estimate of US output and rain relief in US and Russian wheat belts shifted attention back to ample global supplies. Benchmark December milling wheat on the Paris-based Euronext exchange settled down 1.75 euros, or 1.0 percent, by 1534 GMT at 173.25 euros a tonne, its lowest since April 27.
After breaching chart support at 174 euros, the contract was approaching a next support zone at 170-172 euros, traders said.
Chicago wheat also slipped to a two-week low. A rise in the euro against a broadly lower dollar also curbed Euronext prices.
"Wheat remains under pressure after the USDA report which gave a very optimistic outlook for the next US wheat harvest," one futures trader said. "The recovery in the euro against the dollar and the return of some rain in the US and the Black Sea region are also encouraging the downward movement."
Last Thursday's US Department of Agriculture (USDA) world crop report projected higher US wheat production, shifting the focus away from the impact of drought in hard red winter (HRW) wheat belts.
In Germany, cash market premiums in Hamburg were flat with the main impulse coming from high feed wheat prices rather than exports.
Standard bread wheat with 12 percent protein content for May delivery in Hamburg was offered for sale unchanged at 5 euros under Paris December.
Feed wheat prices in Germany's South Oldenburg market remained over milling wheat, with May onwards delivery offered for sale unchanged at 179 euros a tonne with buyers seeking around 178 euros.
In Poland, domestic markets were little changed but export prices ticked up.
Internal market prices for milling wheat with 12.5 percent protein were unchanged on the week at 675-705 zloty (158 to 165 euros) a tonne for May delivery. As in Germany, feed wheat was sometimes over milling wheat at 670-700 zloty a tonne for May delivery.
Exporter purchase prices for 12.5 percent protein wheat rose 5 zloty on the week to 715 zloty a tonne for prompt delivery.
"One ship has been loading about 35,000 tonnes of wheat in Gdynia for Saudi Arabia, but Poland's grain exports by sea are estimated to be 60 percent lower than this time last year," one Polish trader said. "Wheat stocks in Poland still look high, so we are hoping that more shipments will be made before the harvest."