Reuters
MADRID, March 21 (Reuters) – Benchmark European wheat prices extended prior falls on Wednesday under pressure from continuing weakness in Chicago and due to technical selling ahead of key U.S. crop data next week. * Reports Algeria and Morocco had snubbed European wheat in recent heavy buying also weighed on prices. * By 1225 GMT milling wheat futures traded on the Euronext exchange in Paris were down across the board <0#BL2:>, with the front month May contract shedding 0.25 euro, or 0.12 percent, to 208.50 euros ($275.65) a tonne. * “The French supply/balance was tight so far. If these deals really originate from South America, it becomes more comfortable,” a trader said. * French grain growers group Orama said on Tuesday frost had damaged 700,000 hectares, or 8 percent of all winter grain and oilseed acreage in France – mainly wheat, barley and rapeseed – which may need to be resown. * Drought and frost in late 2011 and early 2012 are likely to cut Ukraine’s wheat plantings to 4.0-4.3 million hectares in 2012 from 6.6 million a yearearlier, a senior agriculture ministry official said on Wednesday. SPAIN * Spanish physical wheat posted mild gains in a delayed reaction to recent gains in Paris and Chicago, which are making imports more expensive for theimport-dependent country. * “Importers have stepped on the price accelerator, waiting for buyers to come to them, and without giving an inch,” a report from the Mercolleida agricultural exchange said. * “The basic problem is it is assumed it will cost them over the odds to charter new shipments, because prices are rising in the Black Sea.” * Black Sea countries are Spain’s favourite suppliers, especially Ukraine, when special import licences are available. * Prompt imported feed wheat was last heard changing hands at 229 euros a tonne, ex-store, in key grains port Tarragona, up 2 euros from Friday. * Dealers said concerns over damage to the 2012 wheat harvest from a persistent drought was driving prices inland. * Old crop feed wheat was quoted up 5 euros on the week at 223 euros/tonne in Burgos, Spain’s main wheat producing province. GERMANY * German wheat was hardly changed as the Paris market provided little fresh direction, but strong feed wheat prices again gave background support to milling wheat. * Standard-quality milling wheat for March delivery in Hamburg was offered for sale unchanged at 217 euros a tonne, with buyers at around 215 euros. * Demand from animal feed makers kept German feed wheat prices around or even above milling wheat in parts of the country, repeating a pattern seen in past weeks. * Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered above milling wheat at 222 euros a tonne, with buyers at around 220 euros. * “Demand from animal feed makers remains strong which is underpinning the milling wheat market,” a German trader said. “If transport costs allow, farmers are selling milling wheat for feed.” * “Background export demand also looks good following recent sales to Iran.” * The unexpectedly low feed grain exports in past weeks from the Black Sea region have transferred buying interest back to EU feed wheat, with Spanishpurchasers recently buying German feed wheat. * Prices at 1234 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 208.50 -0.25 -0.12 195.25 6.79 London wheat 170.00 0.00 +0.00 153.65 10.64 Paris maize 211.00 -0.50 -0.24 197.25 6.97 Paris rape 449.75 -1.50 -0.33 421.50 6.70 CBOT wheat 648.75 -2.75 -0.42 671.25 -3.35 CBOT corn 643.50 -2.50 -0.39 654.75 -1.72 CBOT soybeans 1353.25 1.00 +0.07 1207.75 12.05 Crude oil 106.10 0.03 +0.03 98.83 7.36 Euro/dlr 1.32 0.00 -0.03 1.30 2.05 * All grain and oilseed prices for second position. Paris futures prices in Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel. ($1 = 0.7564 euros) (Reporting by Martin Roberts in Madrid, Valerie Parent in Paris and Michael Hogan in Hamburg; Editing by Alison Birrane)
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