EU wheat follows Chicago lower, market awaits Egypt results

PARIS: European wheat prices dropped in late trade on Wednesday in the wake of a fall on US markets and as traders awaited the results of Egypt's tender.

Front month September milling wheat on Paris-based Euronext unofficially closed 1.4% lower at 178.50 euros a tonne, below its key support of 179.75 euros a tonne.

In Chicago most-traded wheat was down 2.6% at $5.21-1/2 a bushel after breaking a support at $5.26 a bushel.

European traders were awaiting the results of Egypt's wheat tender, which attracted a lowest offer of $196.86 per tonne for 55,000 tonnes of Russian wheat, traders said.

There was no French wheat offered in what is Egypt's second purchase of the season.

Warm weather in recent past days in France allowed farmers to kick off the barley harvest.

In Germany, favourable weather again underpinned hopes of a larger German harvest this summer.

"Crops are looking good, temperatures are high and wheat is getting more sunshine after recent rain," one German trader said.

"Temperatures of over 35 Celsius are forecast in parts of Germany next week but hopes are that wheat crops are in a strong enough state to handle this after repeated rain in past weeks."

"More sunshine is also needed for wheat quality development, especially protein, so sunshine forecast from next Monday will be welcome. But the picture is looking far, far better than this time last year."

Crops in Germany and elsewhere in west Europe suffered massive drought damage last summer.

Standard bread wheat with 12% protein for September onwards delivery in Hamburg was offered for sale at 4 euros under Paris December, against 3 euros under on Tuesday. Buyers were seeking at least 5 euros under.