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European wheat edges up in hesitant grain market
January 28, 2013 / 1:55 PM / in 5 years

European wheat edges up in hesitant grain market

Paris, Jan 28 (Reuters) - European wheat prices rose on
Monday as they factored in pre-weekend gains in Chicago and were
underpinned by healthy export demand.
    * Gains were modest as an export-fuelled rally in U.S.
prices petered out and as the euro curbed euro zone prices, with
the currency within sight of an 11-month high against the dollar
    * Benchmark March milling wheat on the Paris futures
market was up 0.75 euros or 0.30 percent at 248.00 euros ($330)
a tonne by 1311 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 Chicago edged lower on Monday in tentative
    * "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 note.
    * 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. 
    * Gains in prices are being capped 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 grains market is currently caught between confidence
and scepticism," Commerzbank analysts said.
    * Analysts polled by Reuters see Chicago corn prices falling
by 22 percent, soybeans by 17 percent and wheat by nearly 13
percent over 2013 as world supply is expected to recover.

    * German wheat continued to retain large premiums over Paris
partly because of continued expectations of high exports in
coming months and firm feed wheat prices.
    * Standard milling wheat for February delivery in Hamburg
was offered for sale up 1 euro and over Paris at 265 euros a
tonne with buyers at around 263 euros, with prices marked up to
reflect the rise strength in Paris. 
    * "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 months.
    * 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 said.
    * 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 1311 GMT
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
  Paris wheat         248.00     0.75    +0.30   250.25    -0.90
  Paris maize         238.00     1.00    +0.42   237.75     0.11
  Paris rape          479.50     3.50    +0.74   456.25     5.10
  CBOT wheat          775.75    -0.75    -0.10   778.00    -0.29
  CBOT corn           722.50     1.75    +0.24   698.25     3.47
  CBOT soybeans      1447.00     6.00    +0.42  1418.75     1.99
  Crude oil            96.19     0.31    +0.32    91.82     4.76
  Euro/dlr              1.34     0.00    -0.10     1.30     3.79
 * All contracts front month except third month for London wheat.
 Paris futures prices in Euros per tonne, London wheat in pounds
 per tonne and CBOT in cents per bushel.
 ($1 = 0.7421 euros)

 (Reporting by Gus Trompiz and Valerie Parent in Paris, and
Michael Hogan in Hamburg, editing by Louise Heavens)

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