(Updates prices)
PARIS, Aug 29 (Reuters) - European wheat prices rose on
Wednesday, supported by a strong rise on U.S. grains markets,
good export demand and persistent uncertainty about potential
restrictions on Russian wheat exports that would benefit EU
wheat, traders said.
* Repeated cuts in Russia's 2012 grain crop forecasts, which
the government lowered to 75 million tonnes, has sparked
concerns Moscow might curb exports, stoking a rally in global
prices.
* Russian Deputy Prime Minister Arkady Dvorkovich, who
coordinates farm policy, will discuss prospects for Russia's
drought-hit grain harvest with Agriculture Minister Nikolai
Fyodorov on Friday.
* "I think the general firm market tendency is because of
the Russian meeting on Friday about wheat exports," one German
trader said. "Any export restrictions by Russia would push
demand to France and Germany."
* However, most traders said they believed a decision to
restrict exports was unlikely to be taken this week.
* Europe's benchmark wheat price, the November contract
on Paris-based milling wheat futures, was 1.3 percent
higher by 1548 GMT at 264.50 euros a tonne.
* Traders also pointed to good export demand from North
Africa as a supportive element for EU wheat prices.
* Tunisia's state grains agency bought 150,000 tonnes of
optional-origin milling wheat on Wednesday,
Jordan is looking for 100,000 tonnes of milling wheat (in
addition to 150,000 tonnes of feed barley) and Saudi Arabia
tendered to buy 550,000 tonnes of hard wheat.
* Syria also issued a new tender to import 100,000 tonnes of
milling wheat, a commodity not subject to sanctions, as feeding
its people becomes harder in the chaos of civil war.
* "Algeria and Morocco are not covered either and will have
to come back to the market soon, which means prices are meant to
stay high," one trader said.
GERMANY
* German prices were up in line with Paris, with export
hopes supporting and feed wheat prices firming as signs
increased that Germany has achieved a wheat harvest of
satisfactory quality despite repeated summer rain.
* Standard milling wheat for September delivery in Hamburg
was offered for sale up 3 euros at 269 euros a tonne with buyers
at around 267 euros.
* New crop feed wheat in the South Oldenburg market near the
Netherlands was quoted just under milling wheat, offered for
sale at up 3 euros at 266 euros a tonne with buyers around 263
euros.
* Germany's wheat harvest is now finished apart from a very
few minor areas in the north, traders said.
* Germany's harvest outlook changed dramatically after a
burst of sunshine in past weeks enabled very fast progress to be
made after repeated rain had delayed the harvest start.
* Germany will harvest 22.8 million tonnes of wheat this
year, slightly up on the 2011 crop of 22.7 million tonnes,
Germany's leading grain trading house Toepfer International
said.
* "There is a slight problem with protein content in German
wheat this year but this is only a marginal difficulty and it is
becoming more apparent that German wheat quality this year is
good to satisfactory," another trader said. "There will be lower
volumes of feed wheat available than thought earlier in the
summer when we had rain almost every day."
* "This means feed wheat prices are again approaching bread
wheat prices. With global corn prices so high, it seems compound
feed makers are not going to find an easy alternative in wheat
and will have to face feed wheat prices at milling prices in
coming months."
* New crop feed wheat in the South Oldenburg market near the
Netherlands was quoted just under milling wheat, offered for
sale at up 2 euros at 265 euros a tonne with buyers around 262
euros.
Prices at 1541 GMT
Product Last Change Pct Move End Ytd
2011 Pct
Paris wheat 263.00 2.25 +0.86 202.50 29.88
London wheat 204.00 0.75 +0.37 153.65 32.77
Paris maize 254.00 2.25 +0.89 196.75 29.10
Paris rape 516.00 3.25 +0.63 438.25 17.74
CBOT wheat 879.25 24.50 +2.87 652.75 34.70
CBOT corn 806.25 16.75 +2.12 646.60 24.69
CBOT soy 1746.75 14.25 +0.82 1198.50 45.74
Crude oil 95.20 -1.13 -1.17 98.83 -3.67
Euro/dlr 1.25 -0.01 -1.04 1.30 -3.16
* Paris futures prices in Euros per tonne, London wheat in
pounds per tonne and CBOT in cents per bushel.
(Reporting by Sybille de La Hamaide in Paris and; Michael Hogan
in Hamburg; Editing by William Hardy)Our Standards: The Thomson Reuters Trust Principles.