EU wheat futures rise on firm US prices
April 18, 2013
European benchmark wheat futures in Paris rose on Wednesday, supported by firm US prices and a lower euro, but the market remained sluggish as dealers awaited clearer indications of harvest prospects after improved weather. Paris front-month May milling wheat was up 0.25 euros or 0.10 percent at 246.50 euros a tonne by 1134 GMT. On Tuesday the contract had also risen 0.25 euros in hesitant trading.
Paris new crop benchmark November wheat saw stronger gains as some dealers took advantage of attractive prices compared to the spot old crop futures. The November contract was up 1.50 euros or 0.71 percent at 213.25 euros. May futures have been supported in recent weeks by strong export demand and a lack of physical availability of old crop wheat, leading dealers to anticipate volatility in the run-up to the contract’s expiry on May 10.
Paris prices drew some support from Chicago wheat, which rose for a second day on Wednesday and a fall in the euro against the dollar, which makes euro-zone grain cheaper for export. But warm weather in France was keeping a lid on prices by easing fears that cold weather in the past month will delay the harvest and cut yields. German prices were little changed with the long-awaited arrival of warmer spring weather weakening by concern about damage to crops from this year’s long winter. But support was coming from brisk internal German market demand partly because the slow start to new crop South American soybean exports continued to boost feed wheat demand.
Standard milling wheat for April delivery in Hamburg was offered for sale unchanged at 254 euros a tonne with buyers at about 252 euros. Germany returned to normal springtime temperatures over the weekend, ending the prolonged winter which had seen unusual frosts and snow into early April, raising concern about damage to grain plants. The slow start to exports of this year’s new soybean harvests in Brazil and Argentina was supporting prices by compelling animal feed manufacturers to buy wheat, traders said. World Agriculture, Source Reuters
Published: Zarai Media Team