Euronext wheat edged lower on Monday as a drop in Chicago encouraged Paris prices to consolidate after a two-week high fuelled by a flurry of French exports. Benchmark May milling wheat lost 0.3 percent to settle 0.50 euros down at 188.75 euros ($213.78) a tonne.
It earlier rose to 189.75 euros, its highest since Feb. 28, as it moved further away from last Monday's nine-month low of 181 euros. Easing US futures, which shed more than 1 percent in Chicago, pressured Euronext. But brisk French exports buoyed Paris prices.
"Even the most panic-stricken market participants of the past few weeks have at last realised that there are real tensions in the French supply balance because of the huge export flows taking place," consultancy Agritel said in a note. Dry crop conditions in Morocco could lead the North African country to extend its import window into May, raising the prospect of more French sales, it said.
Shipping data continued to show a hefty loading line-up at French ports. Traders also noted a vessel was due to load 50,000 tonnes of French barley for Iran in a rare shipment to the Middle Eastern country. Weekly European Union data showed EU soft wheat exports in 2018/19 were continuing to catch up with last season's pace.
The bloc has exported 13 million tonnes so far this season, down 11 percent from a year ago. That compared with a gap of about 25 percent a month ago. In Germany, standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale at 6 euros over Paris May, against 6.50 euros over on Friday, with consumers resisting higher outright prices caused by Euronext's rally.
"There is a weak tone to premiums today, with export shipments in Germany remaining active but not enough to excite the market," one German trader said. "But we see new hope this week that the strength of the Russian currency will make Russian wheat more expensive and transfer more export business to the EU."
Traders said a ship is due to sail from Germany this week with about 45,000 tonnes of wheat for South Africa after ships last week loaded another 50,000 tonnes for South Africa and 30,000 tonnes for Sudan. Favourable harvest prospects kept a cap on EU prices.
The EU's crop monitor forecast a 7.4 percent rebound in the average soft wheat yield compared with last year's drought-hit harvest. Cereals were mostly in good shape, though southern parts of Europe need more rain, the MARS service said.