EU wheat prices fall in thin trade

European wheat prices edged lower in thin trade on Friday, weighed by a decline in Chicago grains and a firmer euro. Dealers said an annual durum wheat event in France kept some participants away from their desks. March milling wheat on Paris-based Euronext settled 0.75 euro, or 0.4 percent, lower at 169.25 euros a tonne.
The contract was almost unchanged over the week after falling to a seven-week low early in the week before rebounding sharply with support from export news. "Today's session was really quiet with the news of the Algerian tender out of the way and people covered now after getting caught by surprise with the price movements this week," one futures dealer said.
German cash market premiums in Hamburg were stable, with rising water levels on the Rhine and Danube making transport easier after two months of disruption caused by shallow water. Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5.5 euros over the Paris March contract; buyers were seeking 4.5 to 5.0 euros over.
In Poland, prices followed the Paris weakness despite hopes Polish grain will supply part of Algeria's purchase of a hefty 585,000 tonnes of wheat on Thursday.
"There is hope that one or two shiploads of Algeria's wheat will come from Poland, but people are starting to ask if the inclusion of US wheat in Algeria's purchase this week shows that European inventories of Algerian quality are not as large as previously thought," one trader said.
But trade was hampered by lack of farmer selling in Poland because of dissatisfaction with current price levels.
Exporters cut purchase prices for 12.5 percent protein wheat by 10 zloty on the week to 735 zloty a tonne (171 euros) for February delivery to port silos, with FOB prices including port costs around 176-178 a tonne for 25,000 tonne vessels.
Wheat shipments from Poland remain brisk, with one ship with 33,000 tonnes having just left Gdynia for Algeria, and another with 65,000 tonnes leaving for Jeddah, while another is still loading 42,000 tonnes.
One vessel with 23,000 tonnes has just left Szczecin for Cuba.
"There are several new ships appearing in port line ups, including one vessel to load 18,000 tonnes in Gdynia possibly for Turkey, while two ships are loading 30,000 tonnes: one in Stettin and one in Swinoujscie for unknown destinations," another trader said.
Regular smaller shipments of 5,000-7,000 tonnes of high protein wheat are also leaving Poland for destinations including Spain, Italy and Britain.