EU wheat prices fall on ample global supplies

European wheat prices fell on Tuesday, pressured by the prospect of ample global supplies, which pushed US markets to test some technical support levels, although firm demand limited the fall, traders said. May milling wheat on Paris-based Euronext, was down 0.7 percent by 1722 GMT to 170.50 euros a tonne, the lowest since February 2.
"We mainly move on technical elements and support testing," a trader said. Algeria, France's largest export market, is tendering for milling wheat with a bidding deadline on Wednesday. This could be the last tender for shipment during the current 2016/2017 marketing campaign.
New crop benchmark September was also lower, down 0.15 percent to 170.00 euros a tonne, on mild weather forecasts in Western Europe seen boosting crop development. In Germany, cash market premiums in Hamburg fell on weaker demand as buyers hoped the weaker trend in Paris would continue. Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at a premium of 3.5 euros over the Paris May contract against 4 euros over on Monday. Buyers were seeking 3 euros over.
"There is a lack of demand today with the big purchase by Saudi Arabia of 735,000 tonnes on Monday failing to inspire the market," one German trader said. "The Saudi purchase is optional-origin and although there is hope some will be sourced in Germany, competition from other regions like Poland and the United States looks like being tough.