European wheat steadies after technical slide

PARIS, Oct 26 (Reuters) - European wheat futures rose slightly on Friday, supported by
healthy export prospects and tightening global supply, in a partial recovery from losses in the
previous session, which were linked to technical adjustments.
* Traders said there was little fresh news to influence prices.
* Benchmark January milling wheat on the Paris futures market was up 1.00 euro or
0.38 percent at 265.00 euros ($340) a tonne by 1229 GMT.
* On Thursday, the Paris benchmark shed 3.25 euros as the forthcoming expiry of front-month
November futures led players to shift towards later contracts. The November contract's
open interest tumbled by 40 percent and its long-standing premium over January was wiped out.
* "We're re-adjusting a bit today because there were so many spreads yesterday between
November and January," a futures dealer said.
* Paris prices also drew some support from a slight rise in Chicago wheat, where concerns
about adverse weather in the United States and Australia offset weakness in other commodity
markets.
* European wheat remained supported by export prospects as rival suppliers Russia and
Ukraine were set to fade from markets. An export ban in Ukraine is due to take effect from Nov.
15.
* Monthly estimates from the International Grains Council on Thursday underlined tight
global supply. It cut its forecast for global maize and wheat crops in 2012/13, further
tightening supplies with grain stocks at the end of the season seen sinking to a five-year low.

* "The stocks in exporting countries are very low in wheat and corn," the futures dealer
said of the IGC estimates.

GERMANY
* German prices were supported by the rise in Paris, the improved export outlook and
expectations of tighter EU maize supplies, traders said.
* Standard milling wheat for November delivery in Hamburg was offered for sale up 1 euro at
268 euros a tonne, with buyers at around 266 euros.
* "There seems to be general acceptance that Ukraine's wheat export ban will take place as
reported in mid-November," one German trader said. "This will probably be followed by Russia
selling out its export supplies in the next couple of months, leaving EU wheat in a good
position to start winning export tenders for shipment from January as Australia's harvest does
not look good."
* The withdrawal of Ukrainian feed wheat supplies to Europe may increase maize demand at a
period of tight supplies.
* "People are starting to worry that Ukraine may also limit maize exports," the trader said.
"They currently deny this, but they previously denied wheat restrictions were planned and anyway
face an election."
* "Such concern is supporting maize prices and means there is hardly any difference between
milling wheat and feed wheat prices."
* German new crop maize was offered for sale at 8 to 9 euros a tonne below feed wheat against
15 euros under in the summer, traders said.
* Feed wheat for November-December delivery in the South Oldenburg market near the
Netherlands was offered for sale close to milling wheat at 265 euros, with buyers at around 263
euros.

* Front-month prices as of 1229 GMT
Product Last Change Pct Move End 2011 Ytd Pct

Paris wheat 263.50 0.75 +0.29 195.25 34.96
London wheat 209.00 -0.25 -0.12 152.25 37.27
Paris maize 248.50 0.75 +0.30 196.75 26.30
Paris rape 485.50 -0.50 -0.10 421.50 15.18
CBOT wheat 872.75 0.00 +0.00 652.75 33.70
CBOT corn 741.50 -0.50 -0.07 646.60 14.68
CBOT soy 1558.75 -5.25 -0.34 1198.50 30.06
Crude oil 85.89 -0.16 -0.19 98.83 -13.09
* Paris futures in euros per tonne, London wheat in pounds per tonne and
CBOT futures in cents per bushel.
($1 = 0.7716 euros)

(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; editing by Jane Baird)