June 7, 2013 / 12:15 PM / 5 years ago

European wheat steady, stronger euro weighs on prices

AMSTERDAM, June 7 (Reuters) - European wheat futures were little changed on
Friday in thin trade as strength in the euro and prospects for rising global
supply offset support from healthy export demand.
    * "You can see that demand is there for wheat," one dealer said. 
    * Benchmark November milling wheat on the Paris futures market was
unchanged on the day at 204.25 euros a tonne by 1123 GMT.
    * It earlier set a new one-week low at 203.75 euros.
    * The European market failed to gain impetus from U.S. wheat which firmed
    * Caution across financial markets in the run-up to U.S. jobs data at 1230
GMT also encouraged the subdued tone in grains. 
    * The euro was steady against the dollar after hitting a three-month high on
Thursday as the European Central Bank provided no hints that further monetary
easing was imminent. A firm euro makes Paris prices more expensive in
dollar-priced export markets. 
    * A clutch of export sales for European wheat were reported by traders this
week, including at least 425,000 tonnes of French wheat tipped for Algeria and
600,000 tonnes from Germany and the Baltic Sea region bought by Iran.
    * The European Union on Thursday announced 330,000 tonnes of weekly export
licences for soft wheat, taking the season's total to 18.2 million tonnes.
    * The EU also reported almost 29,000 tonnes in wheat imports under its quota
scheme. Traders said the volume, the biggest in a month, showed operators were
reacting to last week's decision not to extend zero import duties for the wheat
quotas beyond June 30. 
    * Warm, sunny weather this week has helped ease crop worries in France,
where grains have faced growth delays after cold and wet weather in the past
    * But there was still concern about rain-delayed maize planting in the
    * In a weekly update on Friday, farm office FranceAgriMer said 89 percent of
the grain maize crop had been sown as of June 3, unchanged from the prior week.
    * The amount of crops rated in good or excellent condition fell for the
second straight week, to 62 percent from 67 percent a week earlier.    
 * Prices at 1140 GMT
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
  Paris wheat             204.00    -0.25    -0.12   202.50     0.74
  London wheat            176.00    -0.50    -0.28   153.65    14.55
  Paris maize             218.50    -0.75    -0.34   196.75    11.05
  Paris rape              423.00    -3.50    -0.82   438.25    -3.48
  CBOT wheat              699.75     2.00    +0.29   652.75     7.20
  CBOT corn               664.75     1.50    +0.23   646.60     2.81
  CBOT soy               1539.50    12.25    +0.80  1198.50    28.45
  Crude oil                95.17     0.41    +0.43    98.83    -3.70
  Euro/dlr                  1.33     0.00    +0.05     1.30     2.29
 *  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 and Ivana Sekularac in Amsterdam)

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