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EU wheat prices edge up as importers seek supplies
October 7, 2013 / 2:27 PM / 4 years ago

EU wheat prices edge up as importers seek supplies

LONDON, Oct 7 (Reuters) - Wheat prices in western Europe were slightly higher on Monday, boosted by brisk export demand as Algeria, Jordan and Iraq issued buying tenders.

* A likely fall in winter wheat sowings in Ukraine and Russia, both major exporters, also provided support.

* The benchmark November milling wheat contract on the Paris Euronext market was up 1.00 euro or 0.5 percent at 195.50 euros a tonne by 1350 GMT, edging up towards the 13-week high of 196.25 euros reached last week.

* Algeria’s state grains agency OAIC launched a tender to buy 50,000 tonnes of optional-origin milling wheat for shipment in December, European traders on Monday.

* Iraq’s state grains board has also issued an international tender to buy at least 50,000 tonnes of wheat, European traders said on Monday.

* Jordan’s state grain buyer has issued two international tenders to purchase 100,000 tonnes of milling wheat and 100,000 tonnes of animal feed barley, European traders said on Monday.

* The EU last week reported the largest weekly volume of soft wheat export licences so far this season at 746,000 tonnes. This put the season’s total at 6.9 million tonnes against 3.8 million at this stage last season.

* Dealers said a stronger euro could, however, reduce the competitiveness of eurozone supplies.

* “The strength of the euro is disappointing and could push such sales to other non-euro zone countries in the Baltic Sea region,” one German trader said, referring to tenders by Jordan and Iraq, both countries which seek the higher-qualities that Germany provides.

* Winter wheat sowing in France are in full swing. Sowings were 9 percent complete by Sept. 30, against 3 percent at the same stage last year, according to the French farm office France Agrimer.

* Winter barley sowings were 16 percent complete, against just 4 percent at the same time last year, France Agrimer added.

* Feed wheat futures in London were also higher with November up 1.25 pounds at 160.00 pounds a tonne.

* Germany’s market was little changed with standard new crop milling wheat for October delivery in Hamburg was offered for sale at an unchanged premium of 3.5 euros over the Paris November contract.

* “There is little new domestic demand visible in the market today, with feed producers waiting the results of the maize crop and farmers not under pressure to sell after larger recent large new crop disposals,” one German trader said.

* Uncertainty was also created by the continuing U.S. government shutdown, now seen likely to delay publication of U.S. Department of Agriculture crop forecasts.

* “The U.S. government shutdown is being viewed overall as negative for commodities including grain which could encourage buyers to take to the sidelines,” another German trader said. (Reporting by Nigel Hunt in London, Valerie Parent in Paris and Michael Hogan in Hamburg, editing by William Hardy)

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