Reuters logo
UPDATE 1-EU wheat hesitant as world weather weighed
January 28, 2013 / 5:31 PM / in 5 years

UPDATE 1-EU wheat hesitant as world weather weighed

(Updates with afternoon trading)
    Paris, Jan 28 (Reuters) - European wheat prices were little changed on
Monday, in keeping with hesitant trading in Chicago, as grain markets looked for
global supply indications from weather reports.
    * European wheat remained underpinned by healthy export demand but the euro
continued to curb prices, with the currency still in sight of an 11-month high
against the dollar hit on Friday. 
    * Benchmark March milling wheat on the Paris futures market was up
0.25 euros or 0.10 percent at 247.50 euros ($330) a tonne by 1718 GMT. 
    * It drew strength from a 1 percent rise in Chicago wheat on Friday,
triggered by better-than-expected U.S. exports last week, although this rally
petered out in tentative U.S. trading on Monday. 
    * "The grains market is currently caught between confidence and scepticism,"
Commerzbank analysts said in a note.
    * Gains in prices are being marked by uncertainty over crop conditions in
North and South America and whether this will allow an expected recovery in
global supply after weather-hit harvests in the past year.
    * The market broadly expects large corn and soybean harvests in South
America in the coming months but every twist in the weather is being scrutinised
at a time of low global supply. 
    * The outlook in the United States, meanwhile, is being clouded by a
persisting drought that has parched winter wheat plants and could raise risks
for spring-planted corn and soy. 
    * Export demand continued to support EU prices.
    * "Export activity still looks strong in both Europe and the United States,
a consequence of the absence of Black Sea countries from international markets
to meet world demand that remains healthy," French consultancy Agritel said in a
    * Weekly EU export data on Thursday showed 364,000 tonnes of licences were
awarded, slightly ahead of the average weekly volume so far this season of
360,000 tonnes. 
    * U.S. figures on Friday showed wheat exports above trade expectations at
647,500 tonnes. 
    * In Russia, wheat prices hit new highs last week, after a rise of 75
percent last year, due to tight supply and rising imports, a trader and analysts
said on Monday. 

    * German wheat continued to retain large premiums over Paris partly because
of continued expectations of high exports. 
    * Standard milling wheat for February delivery in Hamburg was offered for
sale unchanged but over Paris at 264 euros a tonne with buyers at around 263
    * "The market remains optimistic that exports will be high in the months
before the new crop," one German trader said. "Britain is also likely to be a
continued buyer in coming months after its poor harvest last year."
    * Continued demand and tight supplies once more kept German feed wheat
around the same level or even above milling prices, a pattern seen in past
    * Feed wheat for February-March delivery in the South Oldenburg market near
the Netherlands was offered for sale unchanged and above milling wheat at 270
euros a tonne with buyers at 268 euros.
    * Polish export wheat prices were slightly firmer in the past week as demand
improved but slack interest from mills kept internal prices unchanged, traders
    * Wheat export prices rose 20 zloty (5 euros) in the last the week to
between 1,070-1,080 zloty a tonne (256-258 euros a tonne) for February delivery
to Baltic Sea ports. 
    * Internal market milling wheat prices were little changed at around
1,030-1,050 zloty a tonne (246-251 euros) delivered to mill in February. 
    * "Feed wheat is still in demand with prices at the same the level as
milling wheat at of 1,030-1,050 zloty a tonne delivered to feed plants," a
Polish trader said.
 * Prices as of 1718 GMT
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
  Paris wheat         247.50     0.25    +0.10   250.25    -1.10
  London wheat        214.50     0.50    +0.23   210.25     2.02
  Paris maize         237.25     0.25    +0.11   237.75    -0.21
  Paris rape          480.00     4.00    +0.84   456.25     5.21
  CBOT wheat          778.75     2.25    +0.29   778.00     0.10
  CBOT corn           725.00     4.25    +0.59   698.25     3.83
  CBOT soybeans      1445.00     4.00    +0.28  1418.75     1.85
  Crude oil            96.26     0.38    +0.40    91.82     4.84
  Euro/dlr              1.35     0.00    -0.07     1.30     3.82
 * All contracts front month except second month for London wheat.
 Paris futures prices in euros per tonne, London wheat in pounds
 per tonne and CBOT in cents per bushel.
 ($1 = 0.7429 euros)

 (Reporting by Gus Trompiz and Valerie Parent in Paris, and Michael Hogan in
Hamburg; Editing by Anthony Barker)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below