The European wheat price fell on Wednesday as a result of the continued competition between Russia and Ukraine.

Benchmark December milling grain on Paris' Euronext dropped by 1.5% at 1613 GMT to 211.00 Euros, also being dragged lower by a fall in Chicago wheat futures.

One German trader stated that "Russian protein prices of 12.5% are being quoted more and more below $230 per ton FOB, and 11.5% is under $220. This level cannot be realistically competed with by the major Arab and African importers."

Traders said that cheap new crop Argentine Wheat was also being offered to Asians and Africans, while diplomatic tensions in Algiers and Paris caused France to be excluded from an Algerian wheat tender.

FranceAgriMer, the farm office of France, cut its forecasts for French soft-wheat exports by 2024/25 on Wednesday. Total shipments are expected to drop by 40% after one of France's worst harvests since 40 years.

The diplomatic relationship with Algeria is complicated. We have a very small harvest, but it is essential that we secure existing markets and seek out new ones," said Benoit Pitrement. He is the head of FranceAgriMer’s grain committee.

The price of Russian wheat with 12.5% protein for December shipment was $226-$230 per ton FOB on Wednesday, according to traders.

Prices were $228 to $234 per ton FOB late last week.

For December, the FOB price of 11.5% protein Russian and Ukrainian wheat was between $219 and $226 per ton.

The largest French farm union has called for nationwide protests starting Monday. On Wednesday, European farmers began protesting against the EU-Mercosur Free Trade Agreement, saying that increased South American imports would hurt the European Union’s agriculture. Reporting by Nigel Hunt, Sybille De La Hamaide and Michael Hogan from Hamburg; Editing by Barbara Lewis.

(source: Reuters)