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EU wheat eases in wait-and-see before USDA report
April 9, 2013 / 2:08 PM / 5 years ago

EU wheat eases in wait-and-see before USDA report

PARIS, April 9 (Reuters) - European wheat prices slipped on
Tuesday as operators remained cautious ahead of a U.S.
government report on Wednesday and after a slight fall in
Chicago, traders said.
    * By 1322 GMT front month May on Paris-based milling
wheat futures <0#BL2:> fell 0.4 percent to 244.75 euros a tonne.
    * The fact that the contract closed below its key resistance
of 247 euros the previous day after hitting a more than two
months high at 247.75 euros put a lid on prices, traders said.
    * Support was pegged at 240-240.25 euros a tonne.
    * Traders are keenly awaiting the U.S. Department of
Agriculture's U.S. and world supply and demand report on
Wednesday after it put U.S. stocks higher than expected last
week, sending prices plummeting.
    * "The report will confirm or deny the stock levels compared
to expectations. Meanwhile the market is prudent and operators
are avoiding risk," Alexis Poullain, analyst with Agritel
consultancy, said.
    * "The stock that will be most watched will be the corn one.
For wheat, we will also see whether the USDA lowers its crop
forecast for Argentina, still at 11 million tonnes when there
seems to be a consensus around 9.5 million tonnes," a Euronext
trader said.
    * In Chicago, wheat edged lower on Tuesday, snapping two
consecutive sessions of gains and falling from a nearly two-week
high as improvement in U.S. winter crop ratings weighed on the
market. 
        
    GERMANY
    * German cash prices were weaker as the stronger euro dimmed
export hopes, in uncertain trade ahead of a key USDA report on
Wednesday and with an end to the winter weather at last forecast
for this week.
    * Standard milling wheat for April delivery in Hamburg was
offered for sale down 2 euros at 255 euros a tonne with buyers
at about 254 euros following trade at 256 euros on Monday.
    * "The sudden strength of the euro this week is
disappointing for export prospects," one trader said. "German
wheat is again looking too expensive in export markets."
    * "Export wheat in Hamburg is being switched back to buyers
in the internal German market as higher prices are being
achieved inland.
    * "The mood is also cautious ahead of the USDA world supply
and demand report tomorrow."
    * Warmer temperatures are at last forecast for this week in
Germany, with frosts ending and rising temperatures expected
from Wednesday to Saturday, reaching normal springtime levels on
Sunday following an extended winter.
    * "Trading in new crop is very cautious despite the better
weather forecasts," another trader said. "Forecasts have
improved but the weather remains very cold in much of Germany
today. I think the market needs to see an actual weather
improvement, not just better forecasts."
    * New crop milling wheat for September delivery in Hamburg
was offered for sale down 2 euros at 221 euros a tonne.
    
    Prices at 1208 GMT
    
 Product               Last   Change  Pct Move End 2011 Ytd Pct
                                                               
 Paris wheat           244.75   -1.00    -0.41   202.50   20.86
 London wheat          201.00   -0.05    -0.02   153.65   30.82
 Paris maize           225.00   -0.50    -0.22   196.75   14.36
 Paris rape            469.75   -1.00    -0.21   438.25    7.19
 CBOT wheat            708.00   -4.50    -0.63   652.75    8.46
 CBOT corn             636.75    3.25    +0.51   646.60   -1.52
 CBOT soy             1376.50   -1.50    -0.11  1198.50   14.85
 Crude oil              93.45    0.09    +0.10    98.83   -5.44
 Euro/dlr                1.30    0.00    +0.24     1.30    0.64
 *  Paris futures prices in Euros per tonne, London wheat in
 pounds per tonne and CBOT in cents per bushel.
 
 (Reporting by Valerie Parent in Paris and Michael Hogan in
Hamburg, writing by Sybille de La Hamaide; editing by James
Jukwey)

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