Euronext wheat futures fell on Tuesday, under pressure from a slide in US prices and farmer selling in France following recent market rises. Front-month September milling wheat on the Paris-based Euronext exchange was down 2.50 euros, or 1.3%, at 182.75 euros ($205.3) a tonne at 1543 GMT, after falling below the 185 euro chart level.
Chicago wheat slipped more than 2% on Tuesday after better than expected US crop ratings eased concern about damage from torrential rain in US grain belts. The improved ratings for US crops shifted attention back towards favourable global supply prospects for wheat, traders said. "The world wheat context is not a concern except for some quality risks in the US and the hot spell in Russia," a Euronext dealer said. "Volatility remains, however, given the fragile situation with US corn."
Massive disruption to US corn planting due to incessant rain triggered the recent rally on grain markets. As on Monday, European traders also cited selling by French farmers at what are seen as attractive levels following a rally last week which saw front-month Euronext reach their highest since early January at 190 euros.
In Germany, cash premiums in Hamburg were little changed as dealers assessed the outlook for the new crop. Standard bread wheat with 12 percent protein for September onwards delivery in Hamburg was offered for sale flat at 2 euros under Paris December. Buyers were seeking at least 4 euros under. German wheat continues to need more rain as last summer's drought and heatwave has reduced sub-soil moisture levels, leaving plants vulnerable to periods of dryness they would otherwise survive easily.
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