European wheat futures declined on Monday, as an Egyptian import bid kept attention on the competitive Black Sea supply. However, unexpected downward revisions in U.S. corn and wheat supply forecasts limited losses.

December wheat, which was the most actively traded position on Paris' Euronext exchange, fell 0.9% to 224.50 euro ($245.27) per metric ton.

The contract had earlier fallen to its lowest level for almost a full week, at 222.25 euro before recovering some ground along with Chicago wheat. This was after the U.S. Department of Agriculture's (USDA) surprised grain markets by reducing its projections of wheat production as well as U.S. corn and wheat stocks.

Focus of the day was Egypt's massive tender for 3.8 million tons wheat to be shipped between October and April.

The traders reported that 15 suppliers had submitted bids for the Egyptian tender. Ukrainian wheat was the most affordable, and the limited French wheat offers were much more expensive.

The results of the tender were still pending.

The abundance of Black Sea wheat at competitive prices has diverted attention from the dire French harvest, where the Ministry of Agriculture predicts that the main wheat crop will reach its lowest volume in the past 30 years with 26.3 million tonnes.

A futures dealer stated that only the Black Sea was in the running to export grain. It's going be grim for France's grain sector, unless Russian prices start to rise.

French farmers, who have already protested earlier in the year, are now facing a triple blow. The production is hampered by rain and prices are low.

The traders noted that despite the renewed Russian attacks against port zones, exports continued from war-torn Ukraine.

A German trader stated that "Ukrainian shipments move into the international markets in large volumes".

A hot spell in Western Europe allowed German farmers to speed up their fieldwork and French farmers to finish harvesting.

Another trader stated, "I believe that about 80% (of Germany's) wheat has been collected with great progress in the past days."

Traders said that the recent rains in Germany were expected to reduce volume and quality. Market estimates for production are now between 19 and 19.5 million tons, and there is talk of up to a percentage point loss in protein content in certain areas. ($1 = 0.9253 euros) (Reporting from Gus Trompiz and Michael Hogan, in Paris; Editing by Tasimzahid and Matthew Lewis).

(source: Reuters)