European wheat edges down after roller coaster week

Fri Apr 5, 2013 6:01pm IST

AMSTERDAM, April 5 (Reuters) - European wheat futures edged
down in light trade on Friday, with the market pausing for
breath after a volatile week which saw prices sell off on an
USDA stocks report and then rebound.
    * The old-crop benchmark, May, held steady as it
continued to attract buyers amid concerns about tight
end-of-season supply.
    * The May contract, the last one of the 2012/13 season that
ends on June 30, was down 0.20 percent at 243.75 euros a tonne
by 1150 GMT.
    * It had risen 10 euros from a low of 233.25 euros hit on
Tuesday after a sell-off sparked by bearish U.S. grain stocks
estimates on March 28, before the long Easter holiday weekend.
    * New-crop November edged down 0.50 euros or 0.23
percent to 215.00 euros.
    * "Wheat has recouped pretty much what it lost with the USDA
report," a French dealer said, referring to the U.S. Department
of Agriculture's quarterly stocks estimates.
    * "There is talk of people buying the May contract in order
to go to delivery."
    * Brisk European wheat exports have drawn attention to low
stocks in the region. The 468,000 tonnes of wheat export
licences reported by the European Union on Thursday were higher
than the previous week's volume and were again above the average
weekly volume so far this season. 
    * An unseasonable cold spell has created concern about yield
prospects for the next crop, while also raising the risk that
the harvest will be later than normal and force markets to rely
for longer on dwindling old-crop supply. 
    * Temperatures are forecast to stay below seasonal averages
at least until early next week in the northern half of France
that is home to its main winter crop belts.
    * Dealers were surprised, however, at the extent of the
rebound in Paris prices after it had fallen less steeply than
Chicago wheat and given multi-month lows this week for U.S. corn
and soybeans.
    * Paris rapeseed futures fell to a three-week low as they
remained under pressure from 10-month lows for U.S. soybeans,
amid concerns that an outbreak of bird flu in China will cut
animal-feed demand from the world's largest soybean importer.
 
    * May rapeseed was down 2.50 euros or 0.53 percent at 467.75
euros a tonne. It earlier dropped to 466.50 euros, a level last
seen on March 20.
    
 * Prices at 1147 GMT
                                                                           
  Product             Last    Change   Pct Move End 2012 Ytd Pct 
 
  Paris wheat             243.75    -0.50    -0.20   202.50    20.37
  London wheat            200.00     0.50    +0.25   153.65    30.17
  Paris maize             224.50     0.50    +0.22   196.75    14.10
  Paris rape              467.50    -2.75    -0.58   438.25     6.67
  CBOT wheat              691.75    -2.25    -0.32   652.75     5.97
  CBOT corn               630.00     0.00    +0.00   646.60    -2.57
  CBOT soy               1360.00   -12.00    -0.87  1198.50    13.48
  Crude oil                93.05    -0.21    -0.23    98.83    -5.85
  Euro/dlr                  1.29     0.00    -0.05     1.30    -0.20
 *  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; editing by Keiron Henderson)
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