European wheat up, weak euro boosts export prospects
AMSTERDAM, March 19
AMSTERDAM, March 19 (Reuters) - Paris wheat futures rose to a two-week high on Tuesday as weakness in the euro boosted prospects for European wheat in a series of tenders being held by importing countries.
* Gains were limited, however, by technical resistance and caution before the results of the different tenders in the coming days.
* May milling wheat on the Paris futures market was up 1.00 euro, or 0.43 percent, at 235.75 a tonne by 1237 GMT in light trading. It had earlier reached 236.25 euros, its highest level since March 5.
* New-crop November was up 0.75 euros at 210.75 euros a tonne.
* The old-crop benchmark was facing chart resistance at 236.50 euros while the new-crop reference was shy of resistance at 212 euros, dealers said.
* The euro stayed near a three-month low against the dollar as investors remained nervous about the consequences of a controversial bailout plan for euro zone member Cyprus.
* The weaker euro would reduce the cost of grain from exporters such as France and Germany in import tenders being held by leading buyers Algeria, Jordan, Iraq and Tunisia.
* "The market's attention is turning towards what the importers are going to buy," one trader said.
* The results of the Tunisian tender are expected first, with a decision due later on Tuesday after bidding produced a lowest offer for wheat of $334.69 a tonne, cost and freight.
* German wheat was again quoted over Paris in the expectation that its crops will be in greater demand amid tight European supply until the large 2013 crop arrives, with Russia and Ukraine out of the market after their poor harvests last summer.
* Standard milling wheat for April delivery in Hamburg was offered for sale up 1 euro at 249 euros a tonne, with buyers at around 247 euros.
* Snow cover was helping to protect grains from a cold snap in Germany.
* "I think the market is taking a relaxed view of the cold weather in Germany in the last week or so," one trader said.
* "Snow cover is good in the big northern and east German grain regions while grain plants have generally not yet left the dormant winter growth phase, so they are not so vulnerable to frosts."
* The positive outlook for Germany's summer 2013 crop was keeping new-crop wheat well below the old crop.
* Germany will harvest 23.5 million tonnes of wheat of all types this summer, up 5.4 percent from 22.3 million tonnes in 2012, the German Farm Cooperatives Association said on Wednesday in its first harvest estimate.
* New crop milling wheat for September delivery in Hamburg was offered for sale well under old crop at 216 euros a tonne.
* Continued demand and tight supplies kept feed-wheat prices close or above milling wheat in parts of Germany.
* Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered for sale up 1 euro at 253 euros a tonne, with buyers at 251 euros.
(Reporting by Valerie Parent in Paris, Michael Hogan in Hambrg and Ivana Sekularac in Amsterdam; Editing by David Goodman)
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