European wheat prices were slightly lower on Friday as sluggish export demand and weakness in Chicago grain futures kept the market on the defensive. December milling wheat on Paris-based Euronext was 0.50 euros lower at 199.50 euros a tonne at 1705 GMT, just above a one-week low of 199.25 euros ($225.61) set on Thursday.
"In Europe we're waiting for export demand to materialise. The dollar is helping us a bit but we're not seeing much export for now," one futures dealer said. European Union soft wheat exports so far this season are about one quarter below the level a year ago, with brisk Russian shipments thwarting hopes that the world's top exporter would be less active this season.
"A ship was finishing loading about 60,000 tonnes of German wheat for Saudi Arabia this week but overall exports remain well below previous years and this was not enough to excite the market," one German trader said. "The main hope for the west EU is that Russian export supplies will start to sell out and that we could see larger export demand for west EU wheat in the first quarter of 2019."
French farmers were approaching the end of the soft wheat sowing campaign, with 85 percent of the expected area sown by Nov. 5, farming agency FranceAgriMer said in a weekly report. In Germany, cash premiums in Hamburg were little changed.
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale unchanged at 3 euros over Paris December.
There was a widening gap between buyers and sellers, with purchase offers of only 1.5 euros over Paris heard.
"Farmers are having to purchase more compound animal feeds and feed grains after the drought this summer damaged maize, hay and straw harvests," the German trader said.
"This is providing market support along with low water on the Rhine, Danube and other rivers which is disrupting inland shipping and making transport more difficult."
Feed wheat in Germany's South Oldenburg market for November/December delivery was offered for sale at around an unchanged 215 euros a tonne, with buyers seeking 213 euros.
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