UPDATE 1-European wheat rebounds in step with Chicago futures

Fri Jan 25, 2013 12:00pm EST

(Updates prices)
    AMSTERDAM, Jan 25 (Reuters) - European wheat futures
rebounded in afternoon trading on Friday as an export-fuelled
rise in Chicago helped Paris prices come off an earlier two-week
low.
    * Benchmark March milling wheat on the Paris futures
market was up 2.00 euros or 0.81 percent at 248.75 euros ($340)
a tonne by 1626 GMT. It earlier fell to 245.00 euros, a level
last touched on Jan. 11.
    * U.S. wheat turned higher after weekly export sales
came in well above the range of trade estimates. 
    * "The weekly U.S. exports were good," a French futures
dealer said. "The rise makes sense."
    * Paris wheat had earlier been hit by an 11-month high for
the euro against the dollar, which made grain from the euro zone
more expensive in dollar-priced export markets, and the euro's
strength helped keep gains smaller than in Chicago. 
    * An uneven trend in grain markets this week also reflected
uncertainty over crop prospects, as operators assess conditions
for upcoming South American corn and soybean harvests, as well
as the risk for U.S. wheat plants from persisting drought.
    * "There is a battle going on over the weather in terms of
forecast models and how to analyse conditions," the French
dealer said. "The rain hasn't been abundant in the United
States. In South America, yields should be decent but some rain
would do some good to the corn."
    * Export activity in Europe remained healthy, despite
accelerating U.S. sales.
    * Weekly EU export data on Thursday showed 364,000 tonnes of
licences were awarded, slightly ahead of the average weekly
volume so far this season of 360,000 tonnes. 
 
    * In France, there was a long line-up of loadings scheduled
at the country's top grain port of Rouen, including several
cargoes bound for Algeria, the top buyer of French wheat.
   
    GERMANY
    * German wheat continued to retain large premiums over Paris
because of export hopes, lack of producer selling and high feed
wheat prices.
    * Standard milling wheat for February delivery in Hamburg
was offered for sale up 1 euro and over Paris at 264 euros a
tonne with buyers at around 262 euros. Prices were marked up to
reflect the afternoon strength in Paris.
    * "There is still perception that the west EU will have to
shoulder more of the global export burden in early 2013 so
overall the feeling continues that we will see good demand, a
tight supply balance and so firm prices early in the new year,"
one German trader said. 
    * "This export perception is still based on hope rather than
evidence of major new export sales, but the brisk number of EU
wheat export licences this week show that EU wheat is in demand
despite the strength of the euro." 
    * Repeated demand and tight supplies again kept German feed
wheat around the same level or even above milling prices.
    * Feed wheat for February-March delivery in the South
Oldenburg market near the Netherlands was offered for sale down
2 euros and above milling wheat at 270 euros a tonne with buyers
at 268 euros.
    * German buyers are thought to be among the applicants for
the large volume of EU wheat import licences applied for in
recent weeks, traders said.
    * "I think we are likely to see feed wheat imports into
north Germany for the feed industry in coming weeks and months
along with large imports of corn," another trader said.
  
      
 * Prices as of 1633 GMT
                                                                                                                             
  Product             Last    Change   Pct Move End 2011 Ytd Pct 
 
  Paris maize         238.00     0.25    +0.11   197.25    20.66
  Paris rape          476.00     0.75    +0.16   421.50    12.93
  CBOT wheat          777.50     9.00    +1.17   671.25    15.83
  CBOT corn          723.25    -1.00    -0.14   654.75    10.46
  CBOT soybeans      1439.00     3.75    +0.26  1207.75    19.15
  Crude oil           95.74    -0.21    -0.22    98.83    -3.13
  Euro/dlr              1.35     0.13   +11.05     1.30     3.84
 * 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.


($1 = 0.7421 euros)

 (Reporting by Gus Trompiz in paris, Michael Hogan in Hamburg
and Ivana Sekularac in Amsterdam;  editing by William Hardy and
Keiron Henderson)
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