European wheat futures firm in step with U.S. prices

Mon Oct 22, 2012 7:58am EDT

AMSTERDAM, Oct 22 (Reuters) - European wheat futures tracked gains in U.S.
prices to stay at one-week highs on Monday, but reaction to pre-weekend talk of
an export ban by Ukraine had largely faded in a quiet start to the week's
trading.
    * Benchmark November milling wheat was up 1.00 euro, or 0.38
percent, at 263.75 euros a tonne by 1130 GMT, matching a one-week high seen on
Friday.
    * "We're following a technical rebound in Chicago," a futures dealer said,
adding that recent liquidation by funds on the U.S. market appeared to be
easing.
    * Wheat prices were supported on Friday by traders saying Ukraine would ban
exports from mid-November in response to its weather-reduced harvest.
 
    * But this impetus had faded, with operators saying Ukraine's limited
surplus was well priced in.
    * "There's no real surprise and despite the fact that, like with Russia, the
term 'embargo' won't be used in order to comply (with) WTO (World Trade
Organisation) rules, Ukraine will not be able to export what it doesn't have,"
grains consultancy Agritel said in a note.
    * "This doesn't change anything in supply fundamentals and the export
potential of the Black Sea region won't be affected by any decision on a
possible restriction."
    
    GERMANY
    * German prices were firmed by the rise in Paris and Chicago futures on
Monday, with the positive export outlook also supportive.
    * Standard milling wheat for October delivery in Hamburg was offered for
sale up 1 euro at 267.50 euros a tonne, with buyers at around 265.50 euros.
    * "The overall export outlook is positive although the firm trend in the
euro is keeping German wheat a little bit too expensive on international
markets," one German trader said. 
    * "The crop outlook in Australia also remains poor which could also help
push more demand to west Europe." 
    * Traders were also expecting more milling wheat import demand in coming
weeks and months from Britain after the poor British wheat harvest this summer.
    * German feed wheat prices remained close to milling wheat levels, because
of expected tight feed grain supplies as a lower EU maize harvest looms and
Black Sea feed grain exports sell out.
    * Feed wheat for November-December delivery in the South Oldenburg market
near the Netherlands was offered for sale up 1 euro at 266 euros with buyers at
around 263 euros.  
    
 * Prices as of 1140 GMT
                                                                                                    
  Product             Last    Change   Pct Move End 2011 Ytd Pct 
 
  Paris wheat         263.75     1.00    +0.38   195.25    35.08
  London wheat        205.50     1.25    +0.61   153.65    33.75
  Paris maize         243.00     1.25    +0.52   197.25    23.19
  Paris rape          485.00     4.00    +0.83   421.50    15.07
  CBOT wheat          880.00     7.50    +0.86   671.25    31.10
  CBOT corn           764.50     3.00    +0.39   654.75    16.76
  CBOT soybeans      1550.25    16.00    +1.04  1207.75    28.36
  Crude oil            90.62     0.57    +0.63    98.83    -8.31
  Euro/dlr              1.31    -0.03    -2.18     1.30     0.86
 * 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 and Gus Trompiz in Paris, Michael Hogan in Hamburg
and Ivana Sekularac in Amsterdam, editing by William Hardy)
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