PARIS: European wheat futures slipped to their lowest in almost four weeks on Monday, pressured by a slide on the US market, better-than-expected harvest results in France and euro strength that clouded the export outlook.

Benchmark December milling wheat on the Paris-based Euronext exchange settled 1.50 euros, or 0.9 percent, lower at 175.25 euros a tonne.

It earlier fell to 174.50 euros, its weakest since June 28, after a chart gap created at the open generated selling pressure.

Chicago wheat futures also fell to a near four-week low, as weather damage to US spring wheat was seen as priced in while forecast rain weighed on US corn futures.

“Even while drought persists and intensifies in US spring wheat areas, the topic is no longer the focus of attention,” consultancy Agritel said in a note.

“The slide (in U.S prices) is being reinforced in Europe by the euro.”

The euro eased on Monday but remained within sight of a two-year peak against the dollar, making grain from countries such as France more expensive on dollar-priced export markets.

Harvest reports in France suggesting a reasonable volume, albeit with locally varied yields, and decent wheat quality also encouraged the pullback in prices.

The scheduled loading of several cargoes of wheat for Algeria at the northern port of Rouen suggested that milling-grade crop was available from the well-advanced harvest.

A new tender being held by Algeria on Tuesday could bring fresh sales for French wheat in its main overseas market.

The European Union’s crop-monitoring service kept its monthly forecast of this year’s EU soft wheat yield almost unchanged, but cut sharply its outlook for the maize yield due to hot, dry weather in the southeast EU.

In Germany, cash premiums in Hamburg firmed to compensate for the fall in Paris, with the market focused on continued rain delaying Germany’s wheat harvest and threatening crop quality.

Standard bread wheat with 12 percent protein content was offered for sale level with the Paris December contract for September delivery in Hamburg against 1 to 2 euros under on Friday.

“Germany had rain again over the weekend, sometimes very heavy, and rain has fallen again today so I would expect harvesting to be brought to a stop in much of the country,” a German trader said.

“I do not think the harvest will start in the northern export areas until next week.”

Widespread rain was forecast in Germany until Friday.

“Concern is growing about last-minute loss of quality because the repeated rain on wheat ready for harvesting is the last thing you want. We urgently need warm weather and sunshine.”—Reuters