HAMBURG: European wheat futures in Paris fell on Wednesday as traders viewed that recent gains had made European wheat exports uncompetitive.

Trade was quiet, however, as public holidays in France and several other countries kept many market participants away.

December milling wheat on the Paris-based Euronext exchange closed down 2.5 euros or 1.5 percent at 159.50 euros ($186) a tonne.

Euronext traded despite the French holiday.

“We are seeing a downward correction in Paris Euronext prices today because of the need to gain more export competitiveness for EU wheat,” said Charles Clack, agricultural commodity analyst at Rabobank.

“Euronext was relatively strong compared to US futures in the past week or so and this was partly due to expectations that EU wheat was in a good position to win business from import tenders such as from Saudi Arabia.

“Now we are seeing a correction as EU wheat could have to fall to bring it back into better export competitiveness, versus the Black Sea for instance.”

Saudi Arabia, a regular buyer of EU wheat, bought a hefty 484,000 tonnes of hard wheat in an international tender on Monday. Russian wheat exports are currently running at a record high pace.

German cash premiums in Hamburg were little changed, with several German states also on holiday following a national holiday on Tuesday.

Standard bread wheat with 12 percent protein content was offered for sale unchanged at 2.5 euros over the Paris December contract for November delivery in Hamburg. “Wheat loadings in German ports are running at a very low level with the main recent activity being inter-EU shipments such as 5,300 tonnes loaded for the United Kingdom a few days ago,” one German trader said. “There is more interest in selling wheat into the animal feed market where firm demand is keeping prices high.”

Feed wheat in the South Oldenburg market was again quoted well above milling wheat, offered for sale around 172 euros a tonne for November/December delivery. —Reuters