European wheat down on falling US markets

European wheat fell on Wednesday for the second day in succession pressured by falling US futures markets and the strength of the euro against the dollar, making EU wheat less competitive on world markets. Benchmark December milling wheat on the Paris-based Euronext exchange, was down 0.75 euro, or 0.3 percent, at 201.00 euros ($227.47) a tonne at 1718 GMT.
Options on the contract expire on Thursday, making the next contract March the new benchmark for milling wheat. March was down 0.1 percent at 204.75 euros a tonne. "Wheat is still trying to find the necessary catalyst to rebound," said a Euronext trader. "Today, it is following the trend on US markets, and the rise of the euro against the dollar above $1.13 is pushing (the March contract) towards 204 euros."
Farm office FranceAgriMer cut its forecast of French 2018/19 soft wheat exports within the European Union, mainly due to lower shipments to Spain where the crop has recovered. But FranceAgriMer left its forecast of French soft wheat exports outside the bloc unchanged from last month at 8.75 million tonnes as it awaited a clearer picture on potential damage from torrential rains in Argentina, which is competing with France in some of its key export markets such as Algeria.
In Germany, cash premiums in Hamburg slipped in thin demand as exports remained very low compared to past years. "The Black Sea is continuing its domination of export markets," one German trader said. "Sellers had to pull back their price ideas because of thin demand."
Standard bread wheat with 12 percent protein for November delivery in Hamburg was offered for sale at 2.5 euros over Paris December against 3 euros over on Tuesday. In Poland, prices were little changed in the past week on thin export demand for Polish wheat and lack of purchase interest from domestic mills, traders said.
Polish mills were offering to buy 12.5 percent protein wheat at an unchanged 820-870 zloty a tonne (191-202.5 euros) for November delivery to mills. Exporter purchase prices were also unchanged at 870-880 zloty a tonne for 12.5 percent wheat for prompt delivery to ports.