European wheat futures edge down in step with U.S. prices

AMSTERDAM, Sept 24 (Reuters) - European wheat futures eased on Monday in
step with Chicago prices as investors turned cautious again on the macroeconomic
outlook, and with grain traders seeing little news in comments by the Russian
government on its export policy.
* Benchmark November milling wheat on the Paris futures market was
down 1.50 euros or 0.57 percent at 262.25 euros a tonne by 1140 GMT, as it
remained in a consolidation zone that has held over the past two months.
* Paris prices had risen on Friday together with U.S. wheat after Economy
Minister Andrei Belousov said Russia may curb grain exports if domestic prices
keep rising.
* Traders said this support had faded as other Russian ministers dismissed
the idea of export curbs, while the market already anticipates that Russian
wheat exports will dwindle in coming months because a severe drought has hit the
harvest there.
* "This is all priced in by the market in any case," one trader said,
referring to the expected fall in Russian supply. "I find it hard to believe in
an export ban but export curbs, why not?"
* Western European wheat is widely expected to benefit from an upturn in
export demand once Russian exports run low, but traders said port activity in
France remains restrained for now, particularly in the main grain terminal of
Rouen.
* The European Union's crop monitoring unit further cut its outlook for
maize yields in this year's EU harvest due to hot, dry conditions in the south
and southeast of the bloc.
* In oilseeds, rapeseed futures in Paris were dented by a fresh fall in
soybeans and losses in crude oil.
* November rapeseed was down 3.75 euros or 0.75 percent at 494.50
euros a tonne. After breaking the psychological threshold of 500 euros at
Friday's close, it was now close to key technical support at 492 euros, dealers
said.
GERMANY
* German prices fell in line with Paris, with attention still on the series
of statements from the Russian government about the country's harvest and
prospects for Russian export restrictions.
* Standard milling wheat for October delivery in Hamburg was offered for
sale down 1 euro at 267 euros a tonne, with buyers at around 265 euros.
* "We seem to be getting a statement a day from a Russian minister, a deputy
minister or deputy prime minister about the crop and the export prospects," one
trader said. "This is starting to confuse some players who are waiting to see
what the Russians decide to do."
* "The weakness of the euro is a positive factor for exports but Ukrainian
wheat still seems to be coming into export markets in sizeable volumes, so Black
Sea competition is not over yet."
* German feed wheat in the South Oldenburg market close to the Netherlands
continued to be quoted close to milling wheat, offered for sale at 264 euros a
tonne for October delivery with buyers around 262 euros.
* "There is continued talk the British wheat harvest has suffered from the
wet summer and will be smaller in size for both feed and milling wheat, so
pushing demand to the continent," another trader said.

* Prices as of 1152 GMT

Product Last Change Pct Move End 2011 Ytd Pct

Paris wheat 261.75 -2.00 -0.76 195.25 34.06
Paris maize 242.00 -1.25 -0.51 197.25 22.69
Paris rape 494.00 -4.25 -0.85 421.50 17.20
CBOT wheat 892.75 -4.50 -0.50 671.25 33.00
CBOT corn 747.00 -1.25 -0.17 654.75 14.09
CBOT soybeans 1606.50 -15.25 -0.94 1207.75 33.02
Crude oil 91.99 -0.90 -0.97 98.83 -6.92
Euro/dlr 1.29 -0.04 -3.24 1.30 -0.24
* All grain and oilseed prices for second position. Paris futures prices in
Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.

(Reporting by Valerie Parent in Paris, Michael Hogan in Hamburg and Ivana
Sekularac in Amsterdam; Editing by Catherine Evans)