EU wheat at 2-month high as old-crop rallies further

Mon Apr 8, 2013 8:39am EDT

PARIS, April 8 (Reuters) - European wheat futures rose to
their highest level in more than two months on Monday as gains in
U.S. prices reinforced a rally in Paris linked to tight
end-of-season supply.
    * May milling wheat, the last contract of the 2012/13
season, was up 2.75 euros or 1.13 percent at 246.50 euros a tonne
by 1216 GMT. In early trade it got to 247.75 euros, a level last
reached on March 24, as it tested technical resistance around 247
euros.
    * The Paris old-crop benchmark has recovered all the losses
seen in the wake of bearish U.S. grain stocks estimates issued by
the U.S. Department of Agriculture (USDA) on March 28.
    * Chicago wheat prices rose to a highest level in nearly two
weeks, supported by a big Chinese purchase of U.S. wheat as well
as worries about weather stress to developing U.S. crops. 
    * Brisk export volumes, which have defied relatively high
European prices and dwindling short-term supply, have helped
prices rally in the past week.
    * "The EU's accumulated wheat exports have meanwhile reached
the high volumes of the 2010/11 season," Commmerzbank analysts
said, referring to European Union export licences. 
    * "For last week, the EU reported exports of 468,000 tonnes
of wheat, which helped the EU wheat prices to make up ground
again following the losses they suffered in the wake of the US
inventory data."
    * A spell of cold weather has also supported gains by raising
the risk slow-growing crops will mean a late harvest and
increased reliance on old-crop stocks.
    * In its first estimate for this year's crop, French grains
consultancy Agritel reckoned on Monday France would harvest 34.8
million tonnes of soft wheat this year, down about 1 million
tonnes on last year's crop.
    * "The wintry weather conditions that have continued until
this week have delayed plant growth and this will have
consequences for yields," Agritel said in a note. 
    * Temperatures are expected to rise steadily this week in
northern France but forecast showers could slow field work.
    * New-crop November was up 1.00 euro or 0.47 percent
to 215.50 euros.    
            
    GERMANY
    * German cash market prices were also higher, supported by
export hopes and worry about the impact of the cold spell.
    * Standard milling wheat for April delivery in Hamburg was
offered for sale up two euros at 256 euros a tonne with buyers at
about 254 euros.
    * "Warmer weather is at last forecast for much of Germany
later this week and this is urgently needed as plants are more
than four weeks behind their normal growth schedule because of
the constant winter weather," one trader said.
   * "It is hard to assess the impact of the cold but bumper
yields can no longer be expected in Germany this summer."
    * New crop milling wheat for September delivery in Hamburg
was offered for sale up 1 euro at 222 euros a tonne.

    
 * Prices as of 1216 GMT
                                                                 
  Product             Last    Change   Pct Move End 2011 Ytd Pct 
 
  Paris wheat           246.50    2.75   +1.13   195.25   26.25
  Paris maize           225.25    1.00   +0.45   197.25   14.20
  Paris rape            468.75    1.50   +0.32   421.50   11.21
  CBOT wheat            702.00    3.00   +0.43   652.75    7.55
  CBOT corn             633.75    4.75   +0.76   646.60   -1.99
  CBOT soy             1357.50   13.75   +1.02  1198.50   13.27
  WTI crude oil          93.39    0.69   +0.74    98.83   -5.50
  Euro/dlr                1.30    0.00   +0.39     0.00    0.00
 * CBOT futures prices are in cents per bushel, Paris futures in
 euros per tonne, WTI crude oil in dollars per barrel.
 
 
 
 (Reporting by Valerie Parent and Gus Trompiz in Paris and
Michael Hogan in Hamburg; editing by James Jukwey)