AMSTERDAM, March 8 (Reuters) – European wheat futures were narrowly mixed by late afternoon as a slight fall in Chicago erased earlier gains in a market that was waiting for impetus from Friday’s monthly crop estimates from the U.S. Department of Agriculture (USDA). * Benchmark May milling wheat BL2K2 was down 0.75 euros or 0.36 percent at 204.75 euros a tonne by 1650 GMT. * “We’re recovering a little after the technical correction yesterday in the run-up the USDA report,” Helene Morin of French grains consultancy Agritel said. * Paris prices had bounced earlier with U.S. futures after a sharp fall on Wednesday. U.S. wheat then edged down in the Chicago session on adjustments before Friday’s world crop estimates from the USDA. * A purchase of 60,000 tonnes of U.S. wheat by Egypt’s state buyer drew little reaction as U.S. wheat retained a clear price advantage over European wheat. * Paris prices were nonetheless underpinned by expectations of demand from other importers, notably Morocco. * The cereals harvest in import-reliant Morocco could fall by half this year due to adverse weather, a state agricultural institute said on Wednesday. * “Morocco is a factor that could come and shake up the market,” Morin said. * The European Union granted 269,000 tonnes of wheat export licences this week, official data showed. * In oilseeds, European rapeseed futures were firm in step with U.S. soybeans. May rapeseed added 0.50 euros or 0.11 percent to 467.75 euros a tonne, just off an earlier nine-month high of 469.50 euros. * Rising prices were hurting margins for European oil mills, some of whom were cutting rapeseed crushing. GERMANY * German wheat was little changed in cautious, risk-off business ahead of the USDA crop forecasts on Friday. Firm German feed wheat prices once more provided background support. * Standard quality milling wheat for March delivery in Hamburg was offered for sale unchanged at 215 euros a tonne with buyers at around 213 euros. * “People are waiting to see the results of the USDA report tomorrow and until then there is a risk-off mood,” a German trader said. “Flour mills have poor profit margins at current firm prices and only buy hand-to-mouth.” * Increasing hope German grains escaped the cold snap in late January and early February without widespread damage was helping to keep new crop prices below old crop. New crop for September delivery was offered for sale around 199 euros at tonne with buyers around 197 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 on Thursday in its first harvest forecast. * Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered for sale at 213 euros a tonne with buyers at around 211 euros. * 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 buying German feed wheat. [ID nL5E8DN7QM] SPAIN * Spanish physical wheat prices have risen this week to catch up with recent gains on futures markets but dealers said volume was light as consumers sat on the sidelines while awaiting market-moving news. * Dealers reported a seasonal lull in the livestock reproductive cycle had crimped demand, but farmers hanging on to dwindling supplies of old crop was supporting prices. * “With prices where they are it’s hard to pass them on, unless the markets change direction. We’ll see what the USDA says tomorrow,” a dealer said. * Prompt feed wheat was quoted at 223-224 euros/tonne in leading grains port Tarragona , up 3-4 euros from Monday. * More deals were reported in new crop for September-October delivery at 200 euros/tonne, up from 198 euros a week ago. * Prices as of 1700 GMT Product Last Change Pct Move End 2011 Ytd Pct Paris wheat 204.50 -1.00 -0.49 195.25 4.74 London wheat 165.50 0.00 +0.00 153.65 7.71 Paris maize 209.25 0.50 +0.24 197.25 6.08 Paris rape 444.00 1.00 +0.23 421.50 5.34 CBOT wheat 634.75 -4.50 -0.70 671.25 -5.44 CBOT corn 633.25 -5.50 -0.86 654.75 -3.28 CBOT soybeans 1332.25 5.50 +0.41 1207.75 10.31 Crude oil 106.77 0.61 +0.57 98.83 8.03 Euro/dlr 1.33 0.06 +4.34 1.30 2.31 * 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 Gus Trompiz in Paris, Michael Hogan in Hamburg, Martin Roberts in Madrid and Ivana Sekularac in Amsterdam)
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