(Updates with afternoon trading)
PARIS, March 14 (Reuters) – European wheat futures were little changed on Wednesday as the market consolidated in step with Chicago grains after rising earlier this week on export expectations. * Wheat remained well supported by sustained demand from countries across North Africa and the Middle East, as well as by crop concerns in Europe. * May milling wheat on the Paris-based futures market inched up 0.25 euros or 0.12 percent to 211.75 euros a tonne by 1616 GMT. New-crop November added 0.75 euros or 0.38 percent to 199.25 euros. * U.S. wheat and corn futures eased as a firm dollar helped cool a market that had risen earlier this week on talk of U.S. corn exports to China. * “There is nothing to overturn the bullish trend, the market is just taking a breather,” Clement Gauthier of French consultancy Horizon Soft Commodities said. * “The May contract in Paris is being supported by international demand in general and from Morocco and Algeria in particular, and we have stocks in France that are not big.” * French farm office FranceAgriMer on Wednesday raised its forecast for French wheat exports outside the European Union this season to 8.8 million tonnes from 8.7 million last month. * It kept its ending stocks forecast at 2.4 million tonnes, a level seen as tight enough to leave the market vulnerable to a crop setback or an export surge this spring. * “It’s something to watch, the new crop had better not arrive late,” a French trader said. * Syria, which is in the throes of a civil uprising, needs to raise grain imports by a third this season after a lower crop, the United Nations’ Food and Agriculture Organisation (FAO) said. * Wheat markets have already been stoked by heavy buying by Iran, partly seen as a response to Western sanctions. * “They are buying both to safeguard stocks and in response to actual needs,” the trader said of Iran and Syria. “They will definitely be major players with big import requirements.” * The main driver for French wheat exports in the latter part of the season could be increased needs in Morocco after poor weather has left it facing a plunge in the local crops. * Dry conditions in western Europe are intensifying after severe frosts in early February caused losses in some regions, notably eastern France. * “It’s clear we’re not going to be talking about frost so much, we’ll be talking more about dryness and then after that maybe late frost,” Horizon’s Gauthier said. * European rapeseed futures were firm, in line with U.S. soybeans which again hit highest levels in nearly six months. * May rapeseed was up 3.25 euros or 0.69 percent at 476.25 euros a tonne as it continued to approach a contract high of 478.25 euros set in late May last year. * Prices as of 1616 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 211.75 0.25 +0.12 202.50 4.57 London wheat 170.95 1.95 +1.15 153.65 11.26 Paris maize 211.75 1.00 +0.47 196.75 7.62 Paris rape 476.25 3.25 +0.69 438.25 8.67 CBOT wheat 652.00 0.50 +0.08 652.75 -0.11 CBOT corn 666.25 -7.75 -1.15 646.60 3.04 CBOT soy 1347.00 -1.75 -0.13 1198.50 12.39 Crude oil 106.05 -0.66 -0.62 98.83 7.31 * Paris futures prices in Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel. (Reporting by Gus Trompiz and Valerie Parent; editing by William Hardy)
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