AMSTERDAM, May 3 (Reuters) – European milling wheat futures fell to a 2-week low on Thursday, pressured by a dip on U.S. grains markets the previous day, sharply lower crude oil prices and improved weather prospects in France, the EU’s largest wheat producer. * More crop-friendly rain in France has helped ease stress caused by frost and dryness earlier this year. * May milling wheat, the last contract for the 2011 crop which expires on May 10, was down 1.25 euros or 0.6 percent at 216.50 euros a tonne by 1537 GMT. New-crop November was down 2.00 euros or 1 percent at 199.75 euros. That was below a long-lasting price range of 200-203 euros, traders said. * “It was about time. We are correcting with U.S. markets and crude oil,” one Euronext trader said. * Traders noted particularly high open interest on the May contract as the storage certificates on the contract need to be handed by 1500 GMT. * Chicago corn and wheat rose on Thursday, as grain markets took a breather after suffering their biggest decline in more than three months in a selloff sparked by prospects of bumper U.S. crops. * The U.N.’s food agency on Thursday cut its 2012/13 outlook for world wheat output to 675 million tonnes from an earlier forecast of 690 million tonnes last year, citing output falls in Ukraine, Kazakhstan, China, Morocco and the European Union. * Rapeseed futures fell in the wake of U.S. soybean futures, with August rapeseed down 3.50 euros or 0.7 percent at 480.50 euros. GERMANY * German feed wheat was again offered for sale at prices over bread-quality wheat with strong demand from animal feed makers continuing. * Standard milling wheat for May delivery in Hamburg was offered for sale unchanged at 233 euros a tonne with buyers offering around 230 euros, once more holding well over Paris prices. * Feed wheat for nearby delivery in the South Oldenburg animal feed grains market near the Netherlands was offered for sale above milling wheat, unchanged at 239 euros a tonne with buyers at around 237 euros. * “Bread wheat is going for animal feed again,” one trader said. “What is the point of providing guarantees for protein content and other quality measurements for milling wheat when you can just sell for feed wheat at higher prices without quality problems.” * German new crop prices are well below old crop after rain in the past two weeks helped relieve parched crops. Standard milling wheat for Hamburg delivery in September was offered for sale at 208 euros a tonne with buyers at 207 euros. * Dryer, warmer weather with mostly isolated showers is forecast for Germany up to Friday with more widespread rain expected on Saturday to Monday. * “North German crops look all right after the recent rain but there is continued worry about the south,” a trader said ITALY * Wheat prices in Italy, a major grain buyer in Europe, were unchanged on the week in thin volumes at Bologna’s grain bourse with bread wheat traded at 230-235 euros a tonne for prompt delivery, without delivery charges, the bourse data showed. * Higher grade soft wheat was flat at 242-247 euros a tonne, with traders citing modest milling demand and thin supplies of national grain. SPAIN * Spain’s physical wheat market was sluggish as dealers returned from a four-day weekend and a five-day break in the capital, Madrid. * “The wheat situation is tense, there is practically no old crop wheat left, dealing is mainly in maize and soya is sky-high,” a dealer said. * Prompt feed wheat was quoted unchanged for about two weeks at 230-231 euros/tonne in leading grains port Tarragona. * Agronomists said recent heavy rains would help salvage the harvest in central and northern regions where a recent drought had little time to do much damage, and encourage spring maize planting by replenishing reservoirs. * Prices as of 1610 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 216.00 -1.75 -0.80 195.25 10.63 London wheat 174.50 0.25 +0.14 153.65 13.57 Paris maize 215.25 -0.25 -0.12 197.25 9.13 Paris rape 481.00 -3.00 -0.62 421.50 14.12 CBOT wheat 610.50 3.50 +0.58 671.25 -9.05 CBOT corn 646.50 4.25 +0.66 654.75 -1.26 CBOT soybeans 1468.00 -12.00 -0.81 1207.75 21.55 Crude oil 102.86 -2.36 -2.24 98.83 4.08 Euro/dlr 1.31 -0.02 -1.61 1.30 1.44 * 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 Valerie Parent in Paris, Michael Hogan in Hamburg, Martin Roberts in Madrid, Svetlana Kovalyova in Milan and Ivana Sekularac in Amsterdam, editing by William Hardy)
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