Wed Dec 5, 2012
AMSTERDAM, Dec 5 (Reuters) - European wheat futures edged higher on Wednesday as a recovery in U.S. prices countered strength in the euro.
* But movements were modest, with limited newsflow encouraging operators to look ahead to next Tuesday's world supply-and-demand estimates from the U.S. government.
* January milling wheat on the Paris futures market was 1.25 euros or 0.47 percent higher at 268.00 euros a tonne by 1641 GMT, to recover from a one-month low hit on Tuesday.
* But the benchmark contract remained shy of resistance at 270 euros.
* Paris prices drew impetus from Chicago, where wheat futures rose to break a four-session slide.
* "We need to get through this bitty week and then we'll see what the USDA report brings," a futures dealer said, referring to the U.S. Department of Agriculture's monthly crop estimates.
* The euro hit a seven-week high against the dollar above $1.31 on Wednesday, making euro zone grain more expensive in dollar-priced export markets.
* Weather-related supply problems continued to underpin prices, with conditions in South America offering background support.
* "Hot and dry weather conditions have impacted the world's largest wheat-producing and exporting regions in 2012," Goldman Sachs said in a research note.
* "We continue to forecast lower wheat production than the USDA in Australia and Argentina and expect that 2012/13 global wheat inventories ex. China and India will decline to their lowest levels since 2007/08."
* U.S. soybeans hit their highest level in almost a month, helping European rapeseed futures to steady after losses on Tuesday driven by weak palm oil and canola markets.
* February rapeseed was up 6.00 euros or 1.28 percent at 474.00 euros a tonne.
* "The weather conditions in the American continent remain at the centre of attention," consultancy Agritel said in a note.
* "Water stress (dryness) persists in the south of the U.S., a major producing region of winter wheat. On the contrary, excessively wet condition still penalises the sowing in Argentina."
UK
* Feed wheat futures in London rose with May up 1.25 pounds or 0.6 percent at 228.00 pounds a tonne.
* Dealers said they expected UK plantings to be lower than official estimates following the Home-Grown Cereals Authority's "Early Bird Survey" showing a 12 percent fall on the year last week.
* "Plantings are under water ... I think plantings will be lower than HGCA and Strategie Grains predicted," said a UK-based broker.
* Imports into the UK were eyed as there was talk wheat from beyond traditional suppliers may be purchased as Britain becomes a net importer of wheat for the first time in a decade this year.
* "Most of it is coming from traditional markets including Germany. People are talking that there may be something coming from the US in the new year and that would be interesting but we're not seeing any evidence yet," said the broker.
(Reporting by Gus Trompiz in Paris, Sarah McFarlane in London and Ivana Sekularac in Amsterdam; editing by Keiron Henderson)
AMSTERDAM, Dec 5 (Reuters) - European wheat futures edged higher on Wednesday as a recovery in U.S. prices countered strength in the euro.
* But movements were modest, with limited newsflow encouraging operators to look ahead to next Tuesday's world supply-and-demand estimates from the U.S. government.
* January milling wheat on the Paris futures market was 1.25 euros or 0.47 percent higher at 268.00 euros a tonne by 1641 GMT, to recover from a one-month low hit on Tuesday.
* But the benchmark contract remained shy of resistance at 270 euros.
* Paris prices drew impetus from Chicago, where wheat futures rose to break a four-session slide.
* "We need to get through this bitty week and then we'll see what the USDA report brings," a futures dealer said, referring to the U.S. Department of Agriculture's monthly crop estimates.
* The euro hit a seven-week high against the dollar above $1.31 on Wednesday, making euro zone grain more expensive in dollar-priced export markets.
* Weather-related supply problems continued to underpin prices, with conditions in South America offering background support.
* "Hot and dry weather conditions have impacted the world's largest wheat-producing and exporting regions in 2012," Goldman Sachs said in a research note.
* "We continue to forecast lower wheat production than the USDA in Australia and Argentina and expect that 2012/13 global wheat inventories ex. China and India will decline to their lowest levels since 2007/08."
* U.S. soybeans hit their highest level in almost a month, helping European rapeseed futures to steady after losses on Tuesday driven by weak palm oil and canola markets.
* February rapeseed was up 6.00 euros or 1.28 percent at 474.00 euros a tonne.
* "The weather conditions in the American continent remain at the centre of attention," consultancy Agritel said in a note.
* "Water stress (dryness) persists in the south of the U.S., a major producing region of winter wheat. On the contrary, excessively wet condition still penalises the sowing in Argentina."
UK
* Feed wheat futures in London rose with May up 1.25 pounds or 0.6 percent at 228.00 pounds a tonne.
* Dealers said they expected UK plantings to be lower than official estimates following the Home-Grown Cereals Authority's "Early Bird Survey" showing a 12 percent fall on the year last week.
* "Plantings are under water ... I think plantings will be lower than HGCA and Strategie Grains predicted," said a UK-based broker.
* Imports into the UK were eyed as there was talk wheat from beyond traditional suppliers may be purchased as Britain becomes a net importer of wheat for the first time in a decade this year.
* "Most of it is coming from traditional markets including Germany. People are talking that there may be something coming from the US in the new year and that would be interesting but we're not seeing any evidence yet," said the broker.
(Reporting by Gus Trompiz in Paris, Sarah McFarlane in London and Ivana Sekularac in Amsterdam; editing by Keiron Henderson)
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