Russia has, for the second time in a month, won a clean sweep in an Egyptian wheat tender, helping send prices in rival exporters America and Europe to three-month lows.

Egypt, the world's biggest wheat importer, filled all of a 180,000-tonne order with Russian grain, priced at $178.50 a tonne, despite some competitive offers of European grain, which is typically viewed as of better quality.

Grain merchant Granit is believed to have offered 60,000 tonnes of French wheat at $179.90 a tonne, and Soufflet 60,000 tonnes at $178.47 a tonne, albeit from two load ports.

Transport costs, at $28-29 a tonne from Russia, were generally marginally lower than for European grain.

Still not competitive 

The awards by Egypt's state wheat buyer, the General Authority for Supply Commodities, were viewed with disappointment in Western markets, notably in Europe, which had been considered as having a good chance of winning its first showing in three tenders.

"News that neither [Europe nor US] sold wheat has been seen as bearish," Hugh Schryver, at Glencore's UK grain arm, said.

"It's focusing people's minds on just how low prices have to go to make Europe competitive," a London trader told Agrimoney.com.

Inventory overhang

Meanwhile, at US broker Country Futures, Darrell Holaday damned Russia for exporting too little, with December data viewed as disappointing, leaving the country with "more inventory than was anticipated".

"The disappointment is that [Russia] has not moved more wheat despite the break in prices," Mr Holaday said.

The negative sentiment, combined with other headwinds including concerns ahead of US President Barack Obama's State of the Union speech, send March wheat down 2.1% to $4.83 ¾ a bushel in Chicago, and by £1.80 to £98.75 a tonne in London.

The prices were three-month closing lows for spot contracts in both markets.

In Paris, the March lot closed down E1.00 at E125.75 a tonne, helped by decline in the euro against both the dollar and sterling.