EU wheat eases in subdued trade

PARIS/HAMBURG, July 31 (Reuters) - European wheat futures fell slightly on Thursday, tracking a similar trend in Chicago as markets waited for clearer signals on global supply prospects, notably in Europe and the Black Sea.

Benchmark September milling wheat BL2U5 on Paris-based Euronext, was down 0.4% by 1525 GMT, to 197.50 euros a metric ton.

The Chicago Board of Trade's most active wheat contract Wv1 also fell 0.4% to $5.71-3/4 a bushel.

In Germany, persistent rainfall continued to disrupt the wheat harvest, raising concerns about crop quality.

"The market is very nervous, farmers are unwilling sellers of new crop as they are unsure of what quality they will be able to deliver. More of the crop than hoped will be only animal feed standard," one German trader said.

Widespread rain is forecast across Germany from Friday through Tuesday.

"Some farmers are deciding to harvest their wheat wet and then accept extra costs for drying machines," the trader said. "This is painful financially. But others are still hoping for a return to sunshine."

In Ukraine, the 2025 grain harvest is projected to fall to between 51 million and 52 million metric tons from about 55 million tons in 2024, largely due to poor weather, the deputy head of Ukraine's largest farm union said.

Russian export prices showed signs of weakness after several weeks of strength, as lower-than-expected new crop supplies reached ports.

"Demand is still low as importers are still hoping for a sharp fall in prices as the Russian new crop starts to arrive at ports in larger volumes," another trader said.

Russian 12.5% protein wheat for August shipment from Black Sea ports was quoted at $236–$239 a ton FOB, with 11.5% protein wheat at $232–$234 a ton.

Russia has exported only about 1.3–1.4 million tons of new crop wheat so far in July, less than half the volume shipped at the same time last year, due to slow farmer selling, traders said.