Prices only eased slightly because the European Union (EU) is committed to supporting third country wheat exports over the coming weeks and because the November intervention price of 238 marks/tonne acts to prevent a free fall.

"Nothing is moving and sellers refuse to budge," one broker said.

"Everyone in the supply chain is nervous about being caught out at the time the market does fall."

Traders expected beneficial harvest weather in east and West Europe which would contribute to voluminous new crops.

Ongoing sales of EU intervention wheat were not fully supportive of the market because they would spoil free market prices, as subsidised intervention material would be more advantageous for buyers, they noted.

Newly-cut grains would compete with each other and rapeseed for storage space.

Barley and rye were expected to beheld short-term with view to sales into public intervention stocks from November.

The Hamburg grain exchange cut its weekly local spot bread wheat price by 2.50 marks to 262.50 marks/tonne (12 per cent protein, 220 hagberg).

The feed wheat price was steady at 250 marks.

Some fob Baltic export prices of ex-crop bread wheat were marked down by 2.50-5.00 marks/tonne.

The overall price range of 237.50-312.50 marks spanning the wide quality range and differing shipment sizes in Aug/Sept remained unchanged.

Fob barley prices for the autumn were nominally quoted at 210-235 marks and those of bread rye at 227.50-237.50.

Generally, European cash grain prices remained unchanged in a market dogged by a lack of activity as participants await the completion of the European union grain harvest, said traders.

Market sentiment remains bearish due to a lack of fresh demand from both export and domestic consumers, together with expectations of another bumper EU grain harvest and large carry-over stocks from lastseason.

In France, wheat prices are unchanged in thin trade, as market participants adopt a "wait and see" attitude until the size and quality of the 1998 harvest is known.

French standard wheat, delivered rouen in July, is offered at 67.00 french francs per 100 kilograms, unchanged from Monday's price.

The Paris-based office National interprofessionnel des Cere Ales is expected to release its first forecasts for the 1998 French grain crop Wednesday. This will be followed by figures from the french agriculture ministry Friday.

Trade sources said Agreste, the french ministry of agriculture's statistics division, is likely to put the 1998 french soft wheat crop at 35.6 to 35.7 million metric tons, the barley crop at 1 0.1 million tonnes and the durum wheat crop at 1.3 million tonnes.

Agreste has estimated the 1997 French wheat crop at 33.0 million tonnes, the barley crop at 10.1 million tonnes and the durum wheat crop at 880,000 tonnes.

In export news, the results of a sell tender from turkey forred and white milling wheat are expected in the next couple of days.

According to trade sources in Turkey, the state grain board, TMO, has received bids ranging between $80 and $94 a ton, fob. It I looking to accept bids over $90 a ton for any quantity, the sources added.

A large turkish tender sale will pressure the EU wheat market as the price will undercut EU wheat prices on the EU's own export markets, sources said.

Pakistan is expected to set a wheat buy tender for 350,000 tons of optional-origin wheat July 15, although the EU is not expected to supply the wheat.

Meanwhile, Liffe wheat futures closed between 50 and 75 pence lower, hitting fresh contract lows due to high s hipper selling, said brokers.

November wheat, the most heavily traded contract with 328 lots changing hands, closed at a contract low of gbp 71.75 a metric ton, 50 pence down on the day.

March and may wheat fared worse, each dropping 75 pence a ton to close at gbp75.50 and gbp 77.50 a ton respectively.