On Monday the contract hit its lowest since July 20 at 193.75 euros, following a slide that began on Thursday, before steadying. Chicago wheat, which had not traded on Monday due to a US holiday, fell on Tuesday. "The European market is consolidating but tentatively as it's not getting support from the US market which is catching up on Monday's fall on Euronext," a futures dealer said.
"People are waiting for the return of a major importer like Egypt or Saudi Arabia to gauge competition between the US, the EU and what's left of Russian supply." A growing loading schedule for wheat cargoes at French ports had raised hopes that lower prices were stirring fresh demand.
However, with overall European Union soft wheat running 19 percent below last season's level, the market was looking for more evidence of a demand upturn, traders said. In Germany, cash premiums in Hamburg fell as the market continued to adapt to seven-month lows hit by Paris in past days.
Standard bread wheat with 12 percent protein for February delivery in Hamburg was offered for sale at around 7.0 euros over Paris March against 8.0 euros over on Monday. In Poland, prices dropped in the last week because of lower international markets, good supply cover held by consumers and slack demand for compound feed production.
"A lot of Polish mills seem to have covered their needs with supply contracts for the next 6-8 weeks and are not under pressure to buy more," one Polish trader said. Wheat with 12.5 percent protein fell by about 10 zloty on the week to 840-870 zloty (194-200.5 euros) a tonne for prompt delivery to mills.
Feed wheat also fell by 10 zloty on the week to 830-870 zloty a tonne depending on the region. "Feed compounders are also not under pressure to buy feed grains and are thought to have good coverage for the next six weeks," the trader added. Exporter price offers for 12.5 percent protein wheat for immediate delivery to ports were little changed at around 875 zloty a tonne.