European wheat prices steady on brisk exports

European wheat prices were steady on Monday as a strong export pace continued to support the market, while traders assessed the consequences of the coronavirus epidemic, including a plan by top wheat exporter Russia to cap grain shipments.
On Euronext, benchmark May milling wheat futures settled up 1.25 euros, or 0.6%, at 196.25 euros ($216.19) a tonne.
A slight fall in Chicago wheat ahead of widely followed US planting and stocks estimates on Tuesday helped curb gains on Euronext.
Proposed export limits in response to the coronavirus crisis has created nervousness on wheat markets after panic buying of bakery and pasta goods already contributed to a rally.
"The market's not really sure where it's going. No one has ever experienced a situation like the coronavirus," one futures dealer said.
"We saw extra domestic milling demand and at the same time with strong exports there were logistical problems with lorries. Then there was the newsflow from Russia."
Russia's economy ministry said on Monday it supported an agriculture ministry proposal to limit grain exports to 7 million tonnes from April through June, making the plan more likely to be adopted.
Traders were now waiting to see if and how the plan would be implemented.
"The planned Russian export limit of 7 million tonnes is what is expected to be exported anyway," one German trader said.
"But if the Russian limit is later cut we could see some late season business switched to the EU."
European Union data showed the soft wheat exports from the bloc plus Britain so far in 2019/20 had reached 23.94 million tonnes, up 68% compared with the same week last year.
In Germany, standard bread wheat with 12% protein for April delivery in Hamburg was offered for sale unchanged around 5.0 euros over the Paris May contract. Buyers were offering around 3.5 euros over Paris.
In Poland, prices were underpinned by brisk exports, the weak local currency and increasing domestic demand.

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