PARIS, Sept 30 European wheat futures set a one-month high on
Monday as the market drew technical strength from last week's export-driven
* Gains were modest, however, as operators awaited a grain stocks report
from the U.S. Department of Agriculture (USDA) at 1600 GMT for further clues
about supply fundamentals.
* November milling wheat on the Paris Euronext market rose as high
as 194.25 euros a tonne, its highest level since Aug. 27. By 1125 GMT it was up
0.50 euros, or 0.3 percent, at 194 euros.
* The Paris benchmark contract had built up technical strength by breaking
resistance levels last week and also drew impetus from an earlier fall in the
euro as a government crisis in Italy unnerved investors.
* Paris prices remained underpinned by the U.S. market, where Chicago wheat
held close to a two-month high hit on Friday on the back of export demand
and short-covering by investment funds.
* But analysts were cautious about the scope for a further rally in wheat
futures, given the need to stay competitive in export markets and with the
imminent arrival of northern hemisphere maize crops, including an expected
record U.S. harvest.
* "In the absence of major weather incidents, upward potential (for wheat)
will be limited by competition from other cereals, notably feed grains, in view
of the maize supply outlook," French consultancy Agritel said in a note.
* Rain-plagued sowing of winter wheat in Ukraine and Russia, however, has
raised an early risk for next year's wheat harvest.
* In Germany, premiums were stable, underpinned by the sowing problems in
Ukraine and Russia, which are export rivals for European Union wheat.
* Standard new crop milling wheat for October delivery in Hamburg was
offered for sale unchanged at 3 euros over the Paris November wheat contract.
* "I think international factors are dominant today, with concern about the
rain delaying sowings in Russia and the likely size of Russian intervention
purchases to raise the country's stocks, which could reduce export supplies,"
one German trader said.
* Polish October milling wheat prices were unchanged at between 730 and 760
zloty a tonne (173-180 euros), depending on the region of the mills taking
delivery. Exporters were offering 780 zloty a tonne (185 euros) delivered to
port silo in October.
* News that Brazilian importers may be considering buying Polish wheat
failed to make an immediate impression on the Polish market.
* Exporters are looking for Polish milling wheat, corn and feed rye, but
with no indications of destinations, traders said.
* "Domestic demand for grain is good, but trade very limited due to the low
volume of farmer selling," another trader said.
* Prices as of 1325 GMT
Product Last Change Pct Move
Paris wheat 194.00 0.50 +0.26
Paris maize 171.25 2.00 +1.18
Paris rape 366.50 -0.75 -0.20
CBOT wheat 682.75 -0.25 -0.04
CBOT corn 456.25 2.25 +0.50
CBOT soy 1313.50 -6.25 -0.47
WTI crude oil 101.24 -1.63 -1.58
Euro/dlr 1.35 0.00 +0.12
* CBOT futures prices are in cents per bushel,
Paris futures in euros per tonne, WTI crude oil
in dollars per barrel.
(Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by