HAMBURG, March 16 (Reuters) – European benchmark wheat futures touched their highest levels in over a month on Friday on a strong performance by U.S. wheat in Chicago on Thursday and Friday, with export demand continuing to fuel prices across EU grain and oilseed markets. * But the key Paris market pared gains in the last hour of the session. * Europe’s benchmark wheat, Paris’ May milling contract , was unchanged at 214.25 euros a tonne at 1730 GMT. * It had touched 216.25 euros a tonne on Friday, the highest level in more than a month and just ahead of resistance at 216.50 euros. * Paris new-crop November touched 205.00 euros, a nine-month high for the contract, but then was flat in late trade at 203 euros. * “The market is bullish in general, with Chicago’s performance yesterday it’s difficult for us to fall,” a futures dealer said. * U.S. wheat rose 2.8 percent on Thursday while U.S. soybeans hit a six-month high, lifted by a weaker dollar and brisk U.S. soy exports. Chicago May wheat futures were again up on Friday, rising 0.3 percent in early trade. * Paris prices also remained supported by export demand for French wheat, with sales to buyers such as Morocco offsetting a drying up of exports to Egypt. * Other Paris crop futures also extended gains in the general bullish mood, with August maize hitting a contract high at 218.00 euros and May rapeseed setting a new contract high at 483.25 euros, exceeding Thursday’s top of 482.25 euros. GERMANY * German wheat was firm, in line with the rise in Paris, with firm German feed wheat prices and wheat export demand also providing background support. * Standard quality milling wheat for March delivery in Hamburg was offered for sale up 1 euro at 221 euros a tonne with buyers at around 219 euros. * Demand from animal feed producers 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 for sale at 225 euros a tonne with buyers at around 223 euros and Friday trade reported at 224.50 a tonne. * “There is support from export demand with the recent sales of German wheat to Iran set to be loaded,” one trader said. “The export outlook remains positive with Iran still seen with an import need.” * The firm demand for wheat from compound feed makers supported the milling market, with farmers selling bread-grade wheat for animal feed. * “We are seeing repeated demand from feed makers for wheat,” another trader said. “They seem to have been wrong-footed by the low supplies coming out of the Black Sea region and the strong international prices for corn.” * The unexpectedly low feed grain exports in past weeks from the Black Sea region have transferred buying interest back to EU feed wheat, with Spanish purchasers recently buying German feed wheat. * “The feed industry just keeps coming back into the market every day for wheat,” the second trader said. “The feed makers are only seeking supplies for quick delivery, they are not interested in buying for deferred delivery dates. Some feed makers are hoping the warmer weather will open up more export from the Black Sea.” * Expectations of a good German grains crop this summer were helping to keep German new crop prices well below old crop. * New crop milling wheat for September delivery in Hamburg was offered for sale at 207 euros a tonne with buyers around 206 euros. * Germany’s 2012 wheat crop will rise 6.3 percent on the year to 24.2 million tonnes from 22.7 million tonnes in 2011, the German Farm Cooperatives Association said in its first harvest forecast. BRITAIN * Feed wheat futures in London were little changed with the impact of gains in Paris offset by the strength of sterling against the euro. * May feed wheat in London was up a marginal 0.50 pounds or 0.2 percent at 172.50 pounds a tonne. The contract is on track for a weekly gain of about 3.3 percent. * “Wheat continues to be a follower of corn markets, although current weather conditions and tight French/UK supplies have supported markets,” British merchant Gleadell said in a report on Friday, noting abnormally dry conditions in many parts of Europe. * Prices at 1738 GMT Product Last Change Pct Move End 2011 Ytd Pct * Prices at 1738 GMT London wheat 172.50 0.50 +0.29 153.65 12.27 Paris maize 217.00 0.50 +0.23 197.25 10.01 Paris rape 460.25 -0.25 -0.05 421.50 9.19 CBOT wheat 671.50 -1.00 -0.15 671.25 0.04 CBOT corn 667.50 0.50 +0.07 654.75 1.95 CBOT soybeans 1378.75 3.25 +0.24 1207.75 14.16 Crude oil 106.26 1.15 +1.09 98.83 7.52 Euro/dlr 1.3170 * 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. (Reporting by Michael Hogan, Gus Trompiz and Nigel Hunt; Editing by Jon Loades-Carter)
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