European wheat futures in Paris fell on Tuesday, pushed down by falling US prices in Chicago as wheat markets consolidated and traders awaited a clearer picture of the impact of the coronavirus pandemic on grain supply and demand.
Benchmark May milling wheat on the Paris-based Euronext exchange settled down 1.25 euros, or 0.8%, at 194.75 euros ($209.51) a tonne. On Monday, the contract had risen to a two-month high of 198 euros a tonne.
After being supported by a flurry of demand, the market was awaiting the results of a tender by Algeria, the top overseas buyer of French wheat, for further direction.
French traders said the market was still nervous about the consequences of the coronavirus crisis, after signs of stockpiling by buyers and reports of food export restrictions in some countries, including Russia.
"There are rumours about Russia and that is making people nervous," a French trader said. "It would help if the coronavirus situation improved in Italy, that would reassure a lot of people around Europe."
In Germany, cash premiums in Hamburg were little changed, supported by good export demand and continued buying by mills of supplies for spot delivery.
Standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged at around 6.5 euros over the Paris May contract. Buyers were offering around 5.0 euros over Paris.
"Mills are still buying some spot wheat supplies for nearby delivery to meet high retail demand but I think the main panic buying by the public is starting to cool down," a wheat buyer at one flour mill said. "I think the main reason why mills are buying is because of logistic hiccups, not demand for flour."
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