HAMBURG: European wheat futures ended slightly lower on Tuesday after the release of world supply and demand forecasts from the US Department of Agriculture towards the end of the European trading day.

The USDA forecast large US and world wheat inventories because of good supplies and slack demand. US wheat was also weak after the report.

“I think the major focus of the USDA report was a reduced forecast of Argentina’s soybean crop rather than wheat,” a German trader said.

May milling wheat on the Paris-based Euronext exchange unofficially closed down 0.50 euro or 0.3 percent at 167.50 euros ($206.71) a tonne, just below Monday’s high of 168.50 euros.

Euronext held close to one-month highs struck on Monday, as concern over adverse weather for US wheat and logistical problems in France continued to support prices.

New crop September wheat ended down 0.25 euro or 0.1 percent at 171.25 euros, near its one-month top of 171.75 euros on Monday.

Traders said rising prices in Russia were lending support to wheat markets, while receding fears of a trade war between the United States and China were also underpinning.

A continuing French rail strike was supporting physical premiums by causing logistical problems inland.

Unions have called for three months of on-off stoppages to protest against a government rail reform, which could disrupt logistics at the end of the grain marketing year.

In Germany, cash market milling wheat premiums in Hamburg slipped in slow demand as exports remained at modest levels.

Standard bread wheat with 12 percent protein content for April delivery was offered for sale down 0.5 euro at 3.0 euros over Paris May.

“Regular export shipments are being made from Germany but the volumes are much lower than usual years and they are not enough to stimulate the market,” one German trader said.

Traders said one ship is to load about 40,000 tonnes of German wheat for South Africa and another 63,000 tonnes for Saudi Arabia. Other loadings in past days included 30,000 tonnes for Nigeria and 30,000 tonnes of feed wheat for Spain.

Feed wheat was again providing the main market driver, traders said.

Feed wheat prices in Germany’s South Oldenburg market were again over milling wheat, with April onwards delivery offered for sale up 0.5 euro at 177.5 euros a tonne with buyers seeking 176.5 euros.—Reuters