PARIS, Oct 9 (Reuters) – European wheat futures rose on Tuesday in light trade as operators waited for a U.S. Department of Agriculture report this week that is expected to show further cuts in crop projections in Australia and Russia.
* A Reuters poll last week forecast wheat production in Australia to fall by more than 1 million tonnes, or 5 percent, from the government’s latest estimate of 22.5 million tonnes, and down 27 percent from last year’s record high of 29.5 million.
* European exporters should benefit from the lower harvests in the world’s second and third-largest exporters but traders said despite some hefty sales recently to heavy buyers like Egypt the jump in demand was yet to happen.
* “We are the cheapest in the world but there is no demand,” a French trader said.
* Syria issued a tender on Tuesday to buy 100,000 tonnes of milling wheat but the war torn country is not a traditional buyer of French wheat.
* Morocco is also expected to come back in the market but traders say the government’s import refund is not attractive enough at the moment to trigger deals for French wheat.
* U.S. wheat in Chicago also continued to garner support from a tightening supply outlook. December wheat rose 0.9 percent to $8.69 a bushel, after closing up 0.4 percent the previous day.
* In Europe, Paris-based milling wheat futures were higher with benchmark November up 0.7 percent at 261.50 euros a tonne by 1140 GMT.
* “It’s a lull market, not to say boring,” one trader said, noting that prices have remained near 261 euros for weeks.
* Many French wheat traders were in Algeria on Tuesday as part of a trip organised by France’s grain export group to present the local grain’s quality.
Prices at 1150 GMT Product Last Change Pct Move End 2011 Ytd Pct
Paris wheat 261.00 -0.25 -0.10 202.50 28.89
London wheat 202.50 0.85 +0.42 153.65 31.79
Paris maize 235.25 -2.75 -1.16 196.75 19.57
Paris rape 483.25 -2.25 -0.46 438.25 10.27
CBOT wheat 873.50 -7.75 -0.88 652.75 33.82
CBOT corn 745.00 3.00 +0.40 646.60 15.22
CBOT soy 1581.25 7.00 +0.44 1198.50 31.94
Crude oil 90.16 0.18 +0.20 98.83 -8.77
Euro/dlr 1.30 0.03 +2.18 1.30 -0.02
* Paris futures prices in euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.
(Reporting by Valerie Parent; Writing by Sybille de La Hamaide; Editing by Robin Pomeroy)
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