European wheat futures edge up in step with Chicago

Fri Dec 28, 2012 7:49am EST

AMSTERDAM, Dec 28 (Reuters) - European wheat prices edged higher on Friday in line with Chicago
futures and after a sharp fall the previous day, traders said.
    * The rate of the euro against the dollar, which had pressured prices on Thursday, weakened
on Friday, bringing further support to European grain prices, they said.
    * "There was some panicking yesterday. We are rebounding slightly but not that much," a Euronext
trader said.
    * Attention on Friday was expected to focus on U.S. weekly export sales due at 1330 GMT.
 
    * By 1133 GMT, the benchmark March contract on the Paris futures market was up 2.00 euros or
0.8 percent at 250.25 euros a tonne. It shed 2.5 percent on Thursday.
    * The spread between CBOT and NYSE Euronext wheat futures remained at historically high levels with
a premium of more than 30 euros ($40) for European milling wheat over U.S. soft wheat.
    * Traders said operators were entering a wait-and-see mode ahead of the close of January contract on
Jan. 10 and the next U.S. government world supply and demand report on Jan. 11.
    * "It could be the calm before the storm," one trader said. "We will have a better view when we have
more data."
    * European rapeseed prices were also higher, recovering losses from the previous day, helped by a
rise on U.S. markets and firm oil prices.
    * Front-month February was at 453.25 euros a tonne, up 1.34 percent on the day.
    
    GERMANY 
    * German wheat was marked up in line with the rise in Paris, again holding on to hefty premiums over
Paris prices, but in thin trade with many market participants still on holiday. 
    * Standard milling wheat for January delivery in Hamburg was offered for sale up 2 euros and well
over Paris at 267 euros a tonne with buyers at around 265 euros.
    * "German price premiums continue to remain firm as the export prospects are good both outside and
inside the EU," one German trader said. 
    * "Russia and Ukraine are now out of the main export markets and Britain is likely to remain a big
importer in coming months after its terrible harvest this summer," he said.
    * Repeated demand and tight supplies kept German feed wheat around the same level or even above
milling prices.
    * Feed wheat for January-March delivery in the South Oldenburg market near the Netherlands was
offered for sale unchanged at 272 euros a tonne with buyers at 270 euros.
    
 * Prices as of 1220 GMT
                                                                                                        
  Product             Last    Change   Pct Move End 2011 Ytd Pct 
 
  Paris wheat         251.50     1.75    +0.70   195.25    28.81
  London wheat        206.70     1.05    +0.51   153.65    34.53
  Paris maize         239.25     2.00    +0.84   197.25    21.29
  Paris rape          454.00     6.75    +1.51   421.50     7.71
  CBOT wheat          777.50     5.25    +0.68   671.25    15.83
  CBOT corn           693.75     2.25    +0.33   654.75     5.96
  CBOT soybeans      1425.75     7.00    +0.49  1207.75    18.05
  Crude oil            91.02     0.15    +0.17    98.83    -7.90
  Euro/dlr              1.32     0.11    +8.83     1.30     1.77
 * 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 Ivana Sekularac; editing by Jason Neely)