Chicago wheat fell more sharply, shedding around 2 percent, as technical selling before a series of government crop reports on Friday was exacerbated by news that US President Donald Trump and Chinese counterpart Xi Jinping are unlikely to meet before a March 1 deadline to reach a trade deal. Grain markets have been hoping for a trade settlement that could revive US soybean exports to China and bring purchases of US wheat and corn.
In Europe, Wednesday's upgrade to farming agency FranceAgriMer's forecast of French soft wheat exports outside the European Union failed to allay demand concerns. Traders were focusing on the agency's increase to projected French wheat stocks, reflecting reduced demand from animal feed makers and other EU countries. "Matif (Euronext) is seeking demand," one futures dealer said. "The cash market is pretty quiet and it feels like a few bookings are required to calm the market."
Weak demand was also weighing on the French barley market. Cash premiums in the northern port of Rouen were at minus 15 euros versus Euronext wheat, having slumped since January amid a lull in demand from major importers like Saudi Arabia, traders said. In Germany, lagging export demand continued to cap milling wheat prices. "There is a steady volume of wheat being loaded in German ports with another vessel set to load about 60,000 tonnes of wheat for Saudi Arabia next week," one German trader said.
"But overall German wheat export volumes are well below past years and higher inland markets make gathering export supplies difficult." Standard bread wheat with 12 percent protein for February delivery in Hamburg was offered for sale at 6.0 euros over Paris March against 5.5 euros over on Wednesday, as sellers declined to accept the overnight fall in Paris.
Feed wheat in the South Oldenburg market for February/March delivery was offered for sale above milling wheat, unchanged at around 216 euros a tonne, with buyers seeking 215 euros.