European wheat prices fall to one-month low

European wheat prices dipped to a more than one-month low on Tuesday, pressured by a plunging dollar which was seen hampering euro-denominated grains at a time when ample supplies are already keeping a lid on prices, traders said. The US dollar tumbled against key rivals on Tuesday and was on course for its worst month since March after US President Donald Trump commented on currency devaluation by other countries and his trade adviser remarked on the euro.
March milling wheat on Paris-based Euronext, was 0.75 percent lower by 1650 GMT at 165.75 euros a tonne after hitting 165.50 euros, a price unseen since December 27.
"The correction continues due to the fall of the dollar and in the absence of a rebound in Chicago for the moment," a Euronext trader said. "World balance sheets are heavy and the lack of weather hiccups continues to weigh in the background," he added, pointing to a return of buyers at prices seen as attractive. The next key support was pegged at 165 euros a tonne.
German cash market premiums in Hamburg were flat, still underpinned by export hopes. Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5 euros over the Paris March contract. Buyers were seeking 4 euros over. "But after a period of pretty busy export shipments there is suddenly a discussion about tighter supplies in Germany when only a couple of months ago we were debating about where we could possibly sell our large stocks."