European wheat prices drop in late trade

European wheat prices dropped in late trade on Monday, retreating from a one-month high hit earlier in the session, due to a fall on US wheat markets. December milling wheat, the benchmark on the Paris-based Euronext market, was down 0.5 percent or 1.0 euro at 175.50 euros a tonne by 1548 GMT after earlier hitting 179.25 euros, its highest since August 20.

“Due to a lack of supportive fundamentals, Matif (Euronext) is following Chicago,” a Euronext trader said. “Export activity is still slow in western Europe and concerns here and there about sowings are not very consistent.” December soft red winter wheat on the Chicago Board of Trade was 1.2 percent lower in the European afternoon session after hitting a one-month high overnight.

French consultancy Agritel said that despite the 9-euro rise last week of European wheat futures, fundamentals, hefty supplies, low exports and strong competition from Black Sea origins, had not changed. Dry weather in France over the past days has allowed wheat sowings to start in several parts of the country. German cash premiums in Hamburg were slightly firmer, reacting to early-day Paris strength, but with the poor German export outlook against cheap Black Sea competition continuing to depress.

New crop standard wheat with 12 percent protein content for October delivery in Hamburg was offered for sale at 1 euro under the Paris December contract against 1.5 euros under on Friday. Buyers were offering an unchanged 2 euros under. In Poland, prices were little changed in the past week with moderate domestic and export demand meeting more farmer selling. “Some farmers are getting nervous because payments for machinery, Fertilizer, chemicals and seeds are due and started to sell small lots of wheat,” one Polish trader said. “But domestic mills are not showing greater interest in wheat purchases.”

Wheat with 12.5 percent protein wheat for October delivery to mills was little changed on the week at 650-680 zloty (153.4-160.4 euros) a tonne. Purchase interest in Poland from exporters is still cautious for 12.5 percent protein wheat with purchase prices of 660-670 zloty a tonne for October delivery, unchanged on the week, traders said.



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