April 26, 2013 / 11:46 AM / in 4 years

European wheat futures down in step with Chicago

4 Min Read

AMSTERDAM, April 26 (Reuters) - European milling wheat futures <0#BL2:>
edged lower in thin trade on Friday in step with the U.S. market as a slowdown
in exports and improved weather conditions weighed on prices.
    * "There is not much going on in the market. We are following Chicago and
looking for new demand," one trader said.
    * On the benchmark Paris futures market, new-crop November milling wheat
 dropped 1.25 euro or 0.6 percent to 209.00 euros a tonne by 1034 GMT for
just 1,300 lots (65,000 tonnes), still above the nearly 6-week low of 206.25
euros hit on Wednesday.
    * Front-month May fell 0.50 euro or 0.2 percent at 241.00 euros.
    * Weekly export data on Thursday showed the European Union awarded 237,000
tonnes of wheat export licences, down sharply from 392,000 tonnes the prior
week. 
    * EU wheat exports are expected to lose momentum in the face of cheaper U.S.
competition and a possible revival in sales from Black Sea countries which were
mostly absent from export markets in the past few months.
    * The EU this week cleared the biggest weekly volume of wheat quota imports
in three months at just over 100,000 tonnes, with U.S. wheat accounting for
77,000 tonnes. 
    * Bearish pressure also came from more favourable weather in Europe this
week, which should help winter crops catch up on growth delays and allow spring
sowing to accelerate after a cold, wet start to spring. 
    * Traders noted that warm, dry weather this week had helped spring sowings
and that rain forecast in France and Germany from Friday should give a further
boost to winter crops, most of which have already caught up some of the delays.
    
    GERMANY 
    * German prices were weakened by signs of lower export demand and better
harvest weather but were still underpinned by continued strong feed wheat prices
and lack of farmer selling in some regions.
    * Standard milling wheat for May delivery in Hamburg was offered for sale
down 2 euros on late Thursday levels at 248 euros a tonne with buyers at about
247 euros.
    * "Export demand for EU wheat is cooling as was shown in the sharp drop in
EU export licences awarded on Thursday," one trader said. 
    * "Rain is also forecast for much of Germany today and on Saturday which
will be highly positive for crop development following a dry period as weather
warmed up in the last couple of weeks."
    * Continued buying by feed makers kept feed wheat prices over bread-quality
wheat in parts of Germany.
    * Feed wheat for May-June delivery in the South Oldenburg market near the
Netherlands was offered for sale down 1 euro and well over milling wheat at 258
euros a tonne.
    * "Feed makers are buying hand-to-mouth and have a continued supply
requirement which has been supporting feed wheat prices recently," the trader
said.
    * German animal feed producers have reduced supply purchases in the
expectation prices will start to fall as large new grain and soybean crops now
being harvested in South America enter world markets. 

 * Prices at 1134 GMT
                                                                         
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
 
  Paris wheat             241.00    -0.50    -0.21   202.50    19.01
  Paris maize             215.00    -0.50    -0.23   196.75     9.28
  Paris rape              483.75    -4.50    -0.92   438.25    10.38
  CBOT wheat              697.25    -4.00    -0.57   652.75     6.82
  CBOT corn               642.50    -2.75    -0.43   646.60    -0.63
  CBOT soy               1425.00     1.50    +0.11  1198.50    18.90
  Crude oil                93.01    -0.63    -0.67    98.83    -5.89
  Euro/dlr                  1.30     0.00    -0.08     1.30     0.36
 *  Paris futures prices in Euros per tonne, London wheat in pounds per tonne and
CBOT in cents per bushel.

 (Reporting by Sybille de La Hamaide in Paris, Michael Hogan in Hamburg and
Ivana Sekularac in Amsterdam, editing by William Hardy)

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