Euronext wheat futures were little changed on Thursday as traders set a drop in US prices against healthy export demand in Europe that has been bolstered by a falling euro.
The favourable export context kept physical premiums steady in France and pushed them higher in Germany, traders said.
Front-month March milling wheat on Paris-based Euronext settled up 0.25 euro at 192.75 euros ($208.92) a tonne, while May, now the most active contract on Euronext, ended unchanged on the day at 191.50 euros.
Chicago wheat fell around 1% as a sharp rise in the death toll from a coronavirus outbreak in China rekindled concern across financial markets.
The European wheat market, however, remained supported by a buoyant export outlook.
The euro extended losses against the dollar to its lowest in over two years, adding to the export competitiveness of western European grain.
Consultancy Strategie Grains increased slightly its monthly forecast of European Union soft wheat exports in 2019/20, to 30.6 million tonnes from 30.5 million previously.
"In the short term, 2019-crop wheat prices should remain high, close to the peak recorded in late January," it said in a report.
However, EU prices could retreat during spring if top wheat exporter Russia remains on course for a bumper harvest, it said.
Euronext hit one-year highs in late January just below 200 euros.
In France, farm office FranceAgriMer raised on Wednesday its forecast of French soft wheat exports outside the EU this season to 12.6 million tonnes from 12.4 million seen in January, pointing notably to strong sales to China that it said could reach 1-1.2 million tonnes this season.
Some market participants saw potential for French exports to top 13 million tonnes but others were more cautious given that France has only shipped about 7 million tonnes with less than half the season left. In Germany, standard bread wheat with 12% protein for March delivery in Hamburg was offered for sale at 5.0 euros over the Paris March contract against 4.5 euros over on Wednesday.
Buyers were offering up to 4.0 euros over Paris.
"Supplies continue to be called up to load ships in German ports and more ships are set to arrive to load wheat in the next few days," one German trader said.
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