AMSTERDAM. Nov 19 European wheat futures rose slightly in quiet
trade on Monday as a bullish export outlook helped to steady the market after a
downwards technical correction last week.
* Benchmark January milling wheat on the Paris futures market was up
1.50 euros or 0.56 percent at 270.75 euros a tonne by 1647 GMT.
* It lost almost 8 euros last week to pull back from the highest level in
four and a half years, pressured by soybean-driven selling in U.S. grain
* The market drew support from a small rise in U.S. wheat futures on Monday
and improved investor sentiment about progress in tackling public finance crises
in the United States and euro zone member Greece.
* "The market is in a bit of a wait-and-see mood. Last week was painful," a
French futures dealer said.
* Wheat markets may get fresh direction from weekly U.S. crop ratings later
on Monday, expected to show another record low for winter wheat for this time of
year as growing areas remain dry.
* A short trading week in the United States, marked by Thursday's
Thanksgiving holiday and a reduced session on Friday, could deprive grain
markets of impetus, traders said.
* The European market remained supported by strong fundamentals, with export
demand sustained by limited competition from weather-affected rival exporters.
* "Worldwide availability of wheat is very limited among the major exporting
countries. The European origin remains the most favoured one for now, with the
United States the only competitor left," French consultancy Agritel said in a
* "This leaves little scope for a major price correction, except if there is
an event of the scale of the Lehman Brothers affair in 2008," it said, referring
to the bankruptcy of the major U.S. bank that fuelled a worldwide economic
* In an illustration of brisk export activity, the European Union last week
granted export licences for 696,000 tonnes of soft wheat, the biggest volume
since September 2010.
* Traders also said a purchase by Algeria of at least 400,000 tonnes in a
tender last week would most likely be sourced from France.
* French port data also showed continued export demand for barley, which
like wheat has benefited from smaller harvests in the Black Sea region. A cargo
of 22,500 tonnes of barley bound for Tunisia was waiting to load at the
Mediterranean port of Fos-sur-Mer.
* German prices remained underpinned by continued hopes of brisk export
sales and expectations of nearby demand to load ships in ports.
* Standard milling wheat for January delivery in Hamburg was offered for
sale up 1 euro and well over Paris at 281 euros a tonne with buyers at around
* "There is hope German wheat will win more export business in markets like
Iran and Saudi Arabia in the near future although there will be tough
competition from the Baltic Sea region," one German trader said.
* Strong demand from exporters coupled with steady purchasing by domestic
consumers supported Polish wheat prices in the last week.
* Polish export milling wheat prices delivered to Baltic Sea ports rose by
50 to 70 zloty a tonne (12 to 17 euro) in the last week, to 1,100 to 1,120 zloty
(265 to 270 euros), traders said.
* "High prices paid for grains by exporters as well as larger demand for
wheat from processors have been the major reasons for the current rising
prices," one Polish trader said.
* "Polish millers have realized that there are no bargains on the market any
more and if they want to buy milling wheat they have to compete with high export
* Polish internal market milling wheat prices are now between 1,030 to 1,050
zloty a tonne (248 to 253 euros) delivered to mill, up 30 to 50 zloty (7 to 12
euros) in the last week.
* Traders said Polish demand for feed wheat is still high with some
consumers thought to have little supply cover.
* Domestic feed wheat prices increased in tandem with milling wheat prices
in the last week, reaching around 1,020 zloty (246 euros) delivered feed mill,
up 40 zloty (9 euros) on the week. Export feed wheat prices delivered port are
at around at the same level, traders said.
* Prices as of 1657 GMT
Product Last Change Pct Move End 2011 Ytd Pct
Paris wheat 270.75 1.50 +0.56 195.25 38.67
London wheat 217.00 2.00 +0.93 153.65 41.23
Paris maize 254.25 1.75 +0.69 197.25 28.90
Paris rape 470.75 6.25 +1.35 421.50 11.68
CBOT wheat 846.50 8.50 +1.01 671.25 26.11
CBOT corn 739.00 12.00 +1.65 654.75 12.87
CBOT soybeans 1396.50 13.25 +0.96 1207.75 15.63
Crude oil 89.37 2.45 +2.82 98.83 -9.57
Euro/dlr 1.28 0.07 +5.70 1.30 -1.17
* 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 Gus Trompiz in Paris, Michael Hogan in Hamburg and Ivana
Sekularac in Amsterdam, editing by Anthony Barker)