European wheat in Paris fell on Tuesday on disappointment that no offer had been made for French wheat in Egypt's international purchase tender and as a US government report forecast larger global wheat stocks than expected.
Benchmark March milling wheat on the Paris-based Euronext exchange settled down 1.3% or 2.50 euros at 192.25 euros ($209.9) a tonne. US wheat futures in Chicago were down some 1.6% in Tuesday trade after the world supply and demand report from the US Department of Agriculture forecast large global wheat inventories.
Egypt's state grains buyer GASC bought 360,000 tonnes of Romanian and Russian wheat for March 21-31 shipment in an international tender on Tuesday.
"There is clearly some disappointment that there was not even an offer for French wheat," a French trader said.
Algeria's hefty purchase of around 660,000 tonnes of wheat in a tender earlier on Tuesday was good news, traders said, but in line with France's planned export pace. Algeria mostly buys French wheat.
The Algerian purchase was big but elsewhere French wheat faced increased competition from Black Sea origin-wheat, another trader said.
One broker noted mounting concern about upcoming sowing of spring crops in France that could be delayed due to continuous rainfall. Heavy rain already disrupted autumn sowing of wheat and barley in France.
The French farm ministry on Tuesday cut its estimate for the area sown with soft wheat this winter ahead of the 2020 harvest to 4.70 million hectares from 4.73 million hectares expected in December. This would now be 5.6% below the 2019 area.
In Germany, cash premiums in Hamburg dipped as demand slipped from recent high levels.
Standard bread wheat with 12% protein for March delivery in Hamburg was offered for sale at 4.0 euros over the Paris March contract against 4.5 euros over on Monday. Buyers were offering up to 3.0 euros over Paris.
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