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UPDATE 1-EU wheat subdued amid Cyprus fears; weak euro supports
March 18, 2013 / 5:56 PM / 5 years ago

UPDATE 1-EU wheat subdued amid Cyprus fears; weak euro supports

(Updates prices, adds Algeria to import tender list)
    PARIS, March 18 (Reuters) - Western European wheat prices were flat to lower
on Monday as export-boosting weakness in the euro partly offset broad losses in
commodities linked to a controversial bailout plan for euro-zone member Cyprus.
    * Worries over the consequences of a proposed bailout for Cyprus, which
would tax bank deposits, sent the euro sliding to its lowest level in more than
three months against the dollar, and also led to selling in equities and most
    * May milling wheat on the Paris futures market closed unchanged on
the day at 234.75 a tonne after a lightly traded session. It stayed close to a
one-week high of 235.00 euros seen on Friday.
    * U.S. wheat fell more than 1 percent to add to a slight drop on Friday,
with the stronger dollar encouraging more selling after a two-week high last
    * "We're adjusting to movements in Chicago and the euro since Friday's
close," a French dealer said.
    * The Paris benchmark contract remained in a consolidation range between 230
and 236 euros, with operators already looking ahead to end-of-month U.S.
government stock and planting estimates for firmer fundamental direction,
dealers said.
    * The weakness in the euro was underpinning export prospects as importing
countries Algeria, Jordan and Tunisia all launched tenders. 
    * With a tender by Iraq already open, the market was poised to see a clutch
of sales for old-crop wheat.
    * European Union wheat export licences have remained brisk this month
despite competition from cheaper U.S. wheat, with last week's volume well above
the average pace this season. 
    * German wheat was again quoted over Paris, underpinned by expectations of
low supplies before the large new 2013 crop arrives, with the weaker euro also
seen as helpful for EU exports.
    * Standard milling wheat for March delivery in Hamburg was offered for sale
down 2 euros at 248 euros a tonne with buyers at around 246 euros.
    * "The weaker euro seen today because of the Cyprus rescue will be a help
for EU exporters and will help erode U.S. competitiveness in the latest tenders
announced today from Jordan and Tunisia," one German trader said.
    * Snow cover was helping protect grains from a cold snap in Germany. "There
is a bit of concern about high winds blowing snow cover off fields but, I think
plants in the north and east generally have good snow cover," another trader
    * Continued demand and tight supplies kept feed wheat prices close or above
milling wheat in parts of Germany.
    * Feed wheat for nearby delivery in the South Oldenburg market near the
Netherlands was offered for sale down 1 euro at 252 euros a tonne with buyers at
250 euros.
 * Prices as of 1733 GMT
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
  Paris wheat         234.75     0.00     0.00   250.25    -6.19
  London wheat        197.50    -0.40    -0.20   210.25    -6.06
  Paris maize         224.50    -0.75    -0.33   237.75    -5.57
  Paris rape          462.00    -0.50    -0.11   456.25     1.26
  CBOT wheat          711.50   -11.50    -1.59   778.00    -8.55
  CBOT corn           719.00     2.00    +0.28   698.25     2.97
  CBOT soybeans      1410.25   -15.75    -1.10  1418.75    -0.60
  Crude oil            93.48     0.03    +0.03    91.82     1.81
 * 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.
 (Reporting by Gus Trompiz and Valerie Parent in Paris, Michael Hogan in
Hamburg, editing by Alison Birrane)

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