May 10, 2013 / 12:26 PM / in 4 years

European wheat down; eyes on USDA report

AMSTERDAM, May 10 (Reuters) - European wheat futures inched lower in
hesitant trading in the run-up to closely watched U.S. government
supply-and-demand forecasts later on Friday.
    * An easing in Chicago wheat and corn futures, after sharp gains on
Thursday, put pressure on European prices, but Paris futures drew some support
because of a purchase by Algeria, a major buyer of French wheat.
    * Benchmark November milling wheat edged down 0.25 euros to 210.75
euros a tonne by 1204 GMT. Further-away contracts were marginally lower.
    * Grain markets were awaiting direction from a U.S. Department of
Agriculture report at 1600 GMT that will include the USDA's first full
supply-and-demand projections for 2013/14. 
    * The market is expecting the USDA to forecast a fall in U.S. wheat
production this year but a rebound in corn and soybean output after a 2012
drought that should allow stocks to recover next year.
    * "European markets should register low activity due to public holidays and
the waiting for the USDA report that is being published today at 18h Paris
time," grains consultancy Agritel said.
    * France observed public holidays on Wednesday and Thursday, and other
countries including Germany also had holidays on Thursday, meaning some
operators remained away from their desks on Friday. 
    * In exports, Algeria bought 175,000 tonnes of durum wheat at around $370 a
tonne, cost and freight, and at least 150,000 tonnes of milling wheat at about
$300 a tonne C&F, traders said.
    * The origins were optional but traders said French wheat was likely to be
chosen for the milling wheat. 
    * Front-month May milling wheat, which expires on Friday, was up
1.25 euros at 246.50 euros.
        
    UK
    * Feed wheat futures in London were marginally lower with November 
off 0.25 pounds or 0.1 percent at 182.75 pounds a tonne. The contract is on
track for a weekly loss of about one percent.
    * Dealers said a slight improvement in the crop outlook, particularly in
western Europe, had helped to keep the market on the defensive.
    * "Globally, weather has improved in recent weeks although there still
remains a concern in some of the key producing regions," merchant Gleadell said
in a market note.
    * "However, for a major rally in wheat prices, a few of these concerns will
have to manifest themselves into major production issues - as they did last
year," the report added.

 * Prices at 1211 GMT
                                                                         
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
 
  Paris wheat             246.25     1.00    +0.41   202.50    21.60
  London wheat            191.00     0.00    +0.00   153.65    24.31
  Paris maize             216.00     0.00    +0.00   196.75     9.78
  Paris rape              427.00     4.00    +0.95   438.25    -2.57
  CBOT corn               694.25    -0.25    -0.04   646.60     7.37
  CBOT soy               1493.75     2.50    +0.17  1198.50    24.63
  Crude oil                94.52    -1.87    -1.94    98.83    -4.36
  Euro/dlr                  1.30    -0.01    -0.44     1.30     0.22
 *  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, Nigel Hunt in London and Ivana Sekularac in
Amsterdam, editing by William Hardy)

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