June 20, 2013 / 1:03 PM / 4 years ago

EU wheat down in wake of Chicago, broad sell-off

PARIS, June 20 (Reuters) - European wheat futures dipped on
Thursday, pressured by a wide commodities and equities sell-off
on global economic concerns and taking a breath after a rise the
previous day on news that China bought French wheat.
    * A fall on U.S. markets added to the bearish sentiment but
the fall of the euro was supportive. 
    * Benchmark November milling wheat on the Paris
futures market shed 1.4 percent at 198.50 euros a tonne by 1150
GMT. 
    * On Wednesday it had briefly hit a one-week high of 200
euros after news that China had bought 200,000 tonnes of French
wheat. The last time China bought significant volumes of wheat
in France was during the 2004/2005 season. 
    * However, traders pointed out that 200,000 tonnes was
relatively small in light of France's export ambitions for 
2013/2014.
    * "The question is whether this is an isolated deal or
whether China will be seen more regularly in wheat markets as an
importer," a German trader said. "China imports huge volumes of
other commodities such as soybeans and corn but had enough wheat
of its own in most past years."
    * In Chicago, U.S. wheat fell from two-week highs amid a
broad-based commodity sell-off and a firming dollar as the U.S.
Federal Reserve signalled it was ready to slow down the pace of
bond purchases. 
    * Premiums for delivery in Rouen turned negative on quality
worries after heavy rainfall over the past days raised fears of
disease development. 
    * Analyst Strategie Grains lifted its forecast for this
year's soft wheat harvest in the European Union due to higher
yield estimates following favourable weather conditions in many
parts of the bloc in the last few weeks. 
    * Heavy rainfall in southwestern France in the past few days
is likely to cut maize sowings in the country by 3.5 percent, an
expert said. 
        
    GERMANY
    * In Germany, prices were little changed with attention
continuing on the improving German harvest outlook following
hot, sunny weather but with the weaker euro supporting.
    * Standard new crop milling wheat for September delivery in
Hamburg was offered for sale unchanged at 205 euros a tonne,
with buyers at around 204 euros.
    * "Overall the market is in a bearish mood as the sunny
weather with some showers is almost perfect for wheat," one
German trader said.
    * "Plants seem to be developing well and fears that the cold
spring could delay the harvest start are now fading. But the
weaker euro will improve EU export prospects at a time of hot
competition from new crop Black Sea supplies."
    
    Prices at 1210 GMT:    
    
  Product             Last    Change   Pct Move End 2011 Ytd Pct
                                                                
  Paris wheat (Nov)     198.50   -1.25   -0.63   195.25    1.66
  Paris maize (Nov)     185.25    0.75   +0.41   197.25   -6.08
  Paris rape (Nov)      412.75   -0.25   -0.06   421.50   -2.08
  CBOT wheat (July)     697.25   -9.75   -1.38   652.75    6.82
  CBOT corn (Dec)       563.00   -7.50   -1.31   646.60  -12.93
  CBOT soy (Nov)       1298.00  -12.75   -0.97  1198.50    8.30
  WTI crude oil          96.93   -1.31   -1.33    98.83   -1.92
  Euro/dlr                1.32    0.00   -0.69     0.00    0.00
 * CBOT futures prices are in cents per bushel, Paris futures in
 euros per tonne, WTI crude oil in dollars per barrel.
   

 (Reporting by Valerie Parent and Sybille de La Hamaide in
Paris, Michael Hogan in Hamburg; editing by Keiron Henderson)

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