OREANDA-NEWS. February 13, 2015. European wheat prices were slightly lower on Thursday, partly due to concern about an expected build-up in stocks this season despite strong export demand.

March wheat futures on Euronext were off 0.4 percent at 185.00 euros a tonne at 1517 GMT.

Consultancy Strategie Grains on Thursday increased its forecast of European Union soft wheat exports this season to a record high due to brisk demand for both milling and animal-feed grades of EU wheat.

In a monthly report, Strategie Grains put EU soft wheat exports in the 2014/15 marketing season to June 30 at 32.5 million tonnes.

"Export hopes continue to underpin the market, but there is also a realisation that the EU needs to export a very sizeable volume this season just to prevent over-burdensome season ending stocks in Europe following the big EU wheat harvest in 2014," one German trader said.

Feed wheat futures in London were also lower with May off 0.20 pounds or 0.2 percent at 123.50 pounds a tonne.

Dealers noted ongoing concern about a potential build-up in UK wheat stocks with imports exceeding exports in the second half of last year.

A narrowing in the premium for imported Germany wheat in the last few weeks has helped to heighten concerns.

"The price spread has been narrowing each week, and if it continues in the same direction it could put pressure on millers to use more imported wheat," Home-Grown Cereals Authority analyst Anna Lockwood said in a market note.

"However, currently UK bread wheat is still competitive against imported German A wheat, and millers have been looking to use domestic supplies where possible this season."

German cash wheat premiums in Hamburg were marked down to compensate for the higher Paris close on Wednesday, in moderate demand with sellers also dissatisfied at current depressed outright price levels.

Standard wheat with 12 percent protein content for delivery in Hamburg in March was offered for sale at a premium of 6.5 euros over the Paris March contract against 7 euros over on Wednesday. Buyers were offering 5.5 euros over.

"Some buyers seem to be expecting further falls in prices following the USDA forecasts of large inventories on Tuesday and are holding off," one German trader said. "Farmers are also often unwilling to sell at current market levels which have fallen sharply since late January."

German port loadings were currently focused more on brisk barley exports than wheat, traders said.