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European wheat prices fell for a second day to hit a new 7-month low on Tuesday amid a lack of supportive fundamental news and some liquidation of positions, traders said. Benchmark May milling wheat on Paris-based Euronext, settled at 188.25 euros ($214.2) a tonne, down 2.50 euros or 1.3 percent, after falling as low as 187.50 euros, a price not seen since July 12 last year.

Traders pegged the next key support at 184.25 euros. "There is no trigger to rise, not even in terms of weather news, and we are shrugging off the dynamic exports," a Euronext trader said, adding the market was in a selling mood. Some traders also referred to funds shifting to other markets.

In contrast, the cash premium in French ports continued to rise, supported by hefty short-term demand for exports in March and April that is leading traders to anticipate a rise in export forecasts to around 9.2-9.5 million tonnes, from the 8.85 million estimated by farm office FranceAgriMer this month. In Germany, cash premiums in Hamburg slipped in a cautious mood after the sharp falls in Paris and Chicago on Monday.

Standard bread wheat with 12 percent protein for March delivery in Hamburg was offered for sale at around 5.0 euros over Paris March, down 0.5 euro on Monday. "Sellers are uncertain whether the price falls will hold and there is a risk-avoidance mood today," one German trader said. "A larger gap is developing in price ideas between buyers and sellers."

"Along with the bloodbath in the international wheat markets, the very mild winter in Germany is forecast to continue this week. This warm weather creates good pre-conditions for this summer's harvest, although a lot can still happen." Feed wheat was still slightly above milling prices, but with recent large imports of feed grains meeting demand.

Copyright Reuters, 2019


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