EU wheat down as Ukraine focus fades

PARIS, Oct 25 (Reuters) - European wheat futures eased on Thursday, after briefly touching a
three-month high, as reaction faded to Ukraine's announcement of an export ban and after the
market failed to break above key chart levels.
* U.S. and European wheat futures rose sharply in the previous session after Ukraine's
agriculture minister said the country would ban wheat exports from Nov. 15, confirming reports
from traders last week.
* But with a drying up of exports from Ukraine and Russia long anticipated after
weather-reduced harvests, and uncertainty over the actual terms of the Ukrainian embargo,
operators said Wednesday's news was not enough to sustain a rally.
* "Someone needs to explain to me why Chicago had this feverish reaction yesterday. Since
the harvest we have known that Black Sea origins would be out of the game before the end of the
year," a French trader said.
* But prices remained well underpinned by healthy export demand as dwindling supply from
Black Sea producers Ukraine and Russia kept the onus on the European Union and the United States
to supply major importers.
* With limited newsflow, trading in Paris wheat futures was marked by technical adjustments
as operators exited the front-month November contract as its expiry approaches and
bought January, now the benchmark for the market.
* The January contract was down 0.25 euros or 0.09 percent to 266.25 euros a tonne by 1222
GMT.
* The contract hit a three-month high at 268.00 euros in early trade but then eased in the
face of a longstanding ceiling at 270 euros.
* Paris front-month November wheat shed 1.75 euros or 0.66 percent to 265.00 euros a
tonne.
* Thursday's movements pushed November prices below January's for the first time in eight
months, traders said.
* The session was also marked by a contract high for the November 2013 contract at
238.00 euros, reflecting concern over sowings in France and Britain, as well as a correction to
a high spread between 2012 and 2013 prices.
* Rains have slowed sowing of winter grains in France and Britain, with concern growing as
the end of a favourable planting window approaches, analysts said.

GERMANY
* The German market was pushed down by the fall in Paris coupled with buyer resistance to
price highs touched in Europe this week, traders said.
* Standard milling wheat for October delivery in Hamburg was offered for sale down 2 euros
at 268 euros a tonne with buyers at around 266 euros.
* "The Ukrainian export ban remains a supportive factor although conflicting reports mean
that some people would still like a confirmation of the confirmation that a ban will take
place," one German trader said.
* "There is a sharp fall in buying interest visible when the market hits 270 euros, a point
we touched yesterday."
* German feed wheat prices remained close to and even above milling wheat levels.
* Feed wheat for November-December delivery in the South Oldenburg market near the
Netherlands was offered for sale up 2 euros at 269 euros with buyers at around 267 euros.
* "Ukraine is a big feed wheat exporter so the export ban would make feed grain supplies
even tighter," a second trader said.

* Front-month prices as of 1221 GMT

Product Last Change Pct Move End 2011 Ytd Pct

Paris wheat 265.00 -1.75 -0.66 195.25 35.72
London wheat 207.50 1.25 +0.61 152.25 36.29
Paris maize 248.50 -0.50 -0.20 196.75 26.30
Paris rape 487.50 1.75 +0.36 421.50 15.66
CBOT wheat 880.25 -3.75 -0.42 652.75 34.85
CBOT corn 753.25 -1.25 -0.17 646.60 16.49
CBOT soy 1570.00 -0.50 -0.03 1198.50 31.00
Crude oil 86.69 0.96 +1.12 98.83 -12.28
* Paris futures in euros per tonne, London wheat in
pounds per tonne and CBOT futures in cents per bushel.

(Reporting by Valerie Parent and Gus Trompiz in Paris and Michael Hogan in Hamburg)