The European wheat price fell again on the Monday due to a stronger euro, which made it more expensive on world markets. EU wheat is facing stiff competition from cheaper Black Sea origins.

The benchmark December milling grain on Paris' Euronext fell by 1.4% at 1553 GMT to 205.75 Euros ($229.74) per metric ton after hitting 205 Euros earlier, near its contract low price of 204 Euros.

The September contract that expires in early January fell 2.5%, to 189.50 Euros, marking a new low contract and another five-month-low for a price of the front-month.

A French trader stated, "The news is not good here for crops, but we continue being influenced by Chicago."

MARS, a crop monitoring service, cut its forecasts on average grain yields in the European Union for this year as hot weather continued to affect crops in Southeast Europe.

One German trader stated that "Russian Wheat prices are dropping and other Black Sea Wheat is being offered again at low prices, and exports to Russia are increasing." The strong euro makes exports harder.

The traders said that the wheat market is a very thin one, with few international tenders. (Reporting and editing by David Evans, Michael Hogan and Sybille De La Hamaide)

(source: Reuters)