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LONDON, Feb 8 (Reuters) - European wheat futures extended a losing run to nine straight sessions on Monday as reassurances by top buyer Egypt about import terms failed to convince a market worried about stalling exports and large stocks.
Falling prices in Chicago, a firm euro and negative chart signals added to the bearish mood, traders said.
March milling wheat
Egypt sought to reassure wheat markets on Sunday after weeks of confusion over the allowed limits of ergot fungus rattled traders.
"The saga over the amount of ergot permitted in Egypt's tenders is not finished despite the agreement between the two ministries involved to maintain a 0.05 percent tolerance," consultancy Agritel said in a market note.
"Egypt is facing a big task in regaining the trust of traders.
Russian wheat export prices have also fallen, undermined by worries about futures supply contracts to Egypt.
German cash premiums in Hamburg were firmed to compensate for falls in Paris as the market awaited Tuesday's USDA world supply and demand report with farmers unwilling sellers at current low prices.
Standard wheat with 12 percent protein content for March delivery was offered for sale at 2.5 euros under the Paris March contract against 3 euros under on Friday. Buyers were offering an unchanged 4 euros under Paris.
"The wheat market remains depressed because of the outlook for ample global wheat supplies coupled with restrained demand," one German trader said. "The USDA on Tuesday could provide a new reminder that supplies are good in just about all the main exporting regions."
German farmers were unwilling sellers at current low prices, he said.
"I think prices are so low that farmers in some regions are close to the level at which they would not cover their costs if they sold, so they may hold onto their inventories," he said.
Feed wheat futures in London also fell with May
(Reporting by Nigel Hunt in London, Gus Trompiz in Paris and Michael Hogan in Hamburg, editing by David Evans) ((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
Keywords: EUROPE GRAINS/
Falling prices in Chicago, a firm euro and negative chart signals added to the bearish mood, traders said.
March milling wheat
Egypt sought to reassure wheat markets on Sunday after weeks of confusion over the allowed limits of ergot fungus rattled traders.
"The saga over the amount of ergot permitted in Egypt's tenders is not finished despite the agreement between the two ministries involved to maintain a 0.05 percent tolerance," consultancy Agritel said in a market note.
"Egypt is facing a big task in regaining the trust of traders.
Russian wheat export prices have also fallen, undermined by worries about futures supply contracts to Egypt.
German cash premiums in Hamburg were firmed to compensate for falls in Paris as the market awaited Tuesday's USDA world supply and demand report with farmers unwilling sellers at current low prices.
Standard wheat with 12 percent protein content for March delivery was offered for sale at 2.5 euros under the Paris March contract against 3 euros under on Friday. Buyers were offering an unchanged 4 euros under Paris.
"The wheat market remains depressed because of the outlook for ample global wheat supplies coupled with restrained demand," one German trader said. "The USDA on Tuesday could provide a new reminder that supplies are good in just about all the main exporting regions."
German farmers were unwilling sellers at current low prices, he said.
"I think prices are so low that farmers in some regions are close to the level at which they would not cover their costs if they sold, so they may hold onto their inventories," he said.
Feed wheat futures in London also fell with May
(Reporting by Nigel Hunt in London, Gus Trompiz in Paris and Michael Hogan in Hamburg, editing by David Evans) ((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
Keywords: EUROPE GRAINS/
