European wheat was stable to slightly higher on Wednesday, buoyed by a strong demand outlook and fall in the euro that makes it more competitive on world markets but the market was lacking a strong impetus, traders said.
Benchmark March milling wheat on Paris-based Euronext, settled at 192.50 euros a tonne, unchanged from the previous day. Further contracts were slightly higher.
The euro fell to a two-year low against the dollar as the US dollar benefited from greater optimism that the coronavirus will be contained.
Farm office FranceAgriMer raised its forecast of French soft wheat exports outside the European Union this season for the fifth month in a row, to 12.6 million tonnes from 12.4 million seen in January and now 30% above last season, pointing to strong demand notably from China.
Rare shipments of French soft wheat to the Asian countries are expected to total between 1.0 and 1.2 million tonnes this season, it said.
FranceAgriMer said its non-EU export estimate was below many trade operators' forecasts but two French brokers said it would be a challenge for France to export another 5.4 million tonnes of soft wheat outside the bloc by the end of June.
French non-EU wheat exports stood at 7.2 million tonnes on Wednesday, according to Refinitiv data.
"This has yet to be seen but it is certainly good news," one said.
In Germany, cash premiums in Hamburg were marked up as sellers declined to follow the overnight fall in Paris prices.
Standard bread wheat with 12% protein for March delivery in Hamburg was offered for sale at 4.5 euros over the Paris March contract against 4.0 euros over on Tuesday. Buyers were offering up to 3.5 euros over Paris.
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