European wheat futures were higher on Wednesday
on strengthening prospects for exports as rival Black Sea wheat fades from the
market, despite a setback for French wheat in a tender from Egypt on Tuesday.
* A strong close in Chicago on Tuesday, when U.S. wheat added more than 1
percent in a technical rally, also provided support to the Paris market, where
trade was thin.
* January milling wheat in Paris was up 1.25 euros or 0.6 percent at
205 euros ($280) a tonne at 1455 GMT.
* The contract was holding within a range of 200 to 207 euros after hitting
a three-week high of 206.25 euros late last week, dealers said.
* Egypt, the world’s biggest wheat importer, bought 120,000 tonnes of
Russian wheat in a tender on Tuesday after buying French and Romanian wheat in a
tender last week.
* French wheat was heavily offered to Egypt but was too expensive.
* Egyptian state wheat buyer GASC also said on Wednesday that Black Sea
supplies were cheaper than French.
* “It doesn’t really mean that last week was a false start, but it is a
warning that prices can’t climb every time we sell a cargo to Egypt,” one trader
said.
* Traders still expected French wheat to pick up more sales to Egypt as
export availability of Black Sea wheat fades.
* “We’re coming to the end of their window,” a futures dealer said of Black
Sea origins. “We’re getting into a complicated (winter) shipping period for
Russia. There was also no Romanian wheat offered to GASC this time.”
* However, the setback in the GASC tender did weigh on cash prices in
France, which were slightly lower on Wednesday, brokers said.
GERMANY
* German wheat premiums were marked down, holding outright prices steady as
Paris rose, with physical demand slack despite good export prospects.
* Standard new crop milling wheat for January delivery in Hamburg was
offered for sale at 3.5 euros over the Paris March contract, down 0.5
euro.
* “Demand is low from mills and exporters,” one European trader said. “There
is a brisk programme to load ships in Hamburg and Rostock, but this is old
business. There is a lack of new export deals to provide impulse; farmers are
reserved sellers.”
* Traders were cheered to see German wheat offered in Egypt’s purchase
tender on Tuesday after an absence of several months.
* “German and other west EU wheat are gaining export competitiveness, but we
need to see more signs of new sales rather than hopes of sales,” another trader
said.
* Prices at 1455 GMT
Product Last Change Pct Move End 2012 Ytd Pct
CBOT wheat 653.25 3.00 +0.46 778.00 -16.03
CBOT corn 418.50 0.75 +0.18 698.25 -40.06
Paris wheat 205.00 1.25 +0.61 250.25 -18.08
Paris maize 173.00 0.25 +0.14 237.75 -27.23
Paris rape 373.00 0.75 +0.20 456.25 -18.25
WTI crude oil 93.52 0.18 +0.19 91.82 1.85
Euro/dlr 1.3538
* CBOT futures prices are in cents per bushel, Paris futures in
euros per tonne, WTI crude oil in dollars per barrel.
