Concerns about potential weather damage to European wheat pushed up benchmark prices for French new crop wheat on Monday, while most other prices were little changed in light trade as U.S. grain markets were closed for a holiday.
* New-crop November milling wheat in Paris rose 2.75 euros or 1.42 percent to 196.50 euros.
* "There is a bit of precautionary buying. Even if it's rather premature, since it's hard to assess actual damage from the cold spell we had, some people are worried that wheat crops are not looking very pretty," a French futures dealer said.
* But analysts said winter losses to the main wheat crop in western Europe should be limited, with significant damage only likely at this stage for French durum and barley crops.
* As for other futures, spread trading narrowed last week's bloated premium for front-month March over the May contract.
* March was down 0.25 euros or 0.12 percent at 217.00 euros a tonne by 1704 GMT, while May was up 1.50 euros or 0.72 percent at 211.25 euros.
* Trading volumes in Paris were light due to the closure of Chicago grain markets for the Presidents Day holiday.
* A sharp rise in U.S. wheat on Friday, together with fresh gains on equity and oil markets, also underpinned European wheat.
* Loadings remained light at French grain ports , but traders said they expected a pick-up in French shipments after a spate of recent tenders and given less aggressive shipments from Russia and Ukraine.
* However, a rising euro, which hit a one-week high against the dollar on Monday as euro zone finance ministers were set to approve a second bailout for Greece, could erode the competitiveness of European wheat.
* On the European rapeseed market, May futures hit the highest level for the contract since June 3. The contract was up 1.50 euros or 0.33 percent at 457.25 euros a tonne, just off an earlier high of 458.00 euros.
* The market continued to be buoyed by rallying prices of soybeans and crude oil, as well as tight European rapeseed supply, traders said.
GERMANY
* German wheat was little changed in cautious trade, encouraged by the U.S. holiday closure and amid disappointment that a major wheat tender concluded by Saudi Arabia over the weekend looked unlikely to be sourced from Germany.
* Standard quality milling wheat for March delivery in Hamburg was offered for sale flat at 218 euros a tonne with buyers at around 216 euros.
* "There had been hope that the Saudi wheat tender would go to Germany, but the price looks too low," one trader said. "This is a bit of a disappointment as the export competition from the Black Sea region is at last starting to fade."
* Saudi Arabia's state grains buyer purchased 330,000 tonnes of wheat from the United States, Canada, Australia and the European Union at an average price of $320.44 a tonne c&f.
* "The sellers have the option of selecting the origin in the Saudi purchase, and the feeling is that the price is too low for it to come from Germany at present market levels," a trader said.
* Deep frosts this month have caused some canals and rivers to freeze up including the Danube, but the warmer weather could help to free inland waterways in coming days.
SPAIN
* In major importer Spain, physical wheat prices were little changed as the market awaited direction, with weak demand weighing on prices while support came from delayed arrivals under the EU's tariff-rate quota (TRQ) imports.
* Dealers estimated that Spanish importers had so far executed little of the 1.2 million tonnes available under the latest TRQ award, with a March 31 deadline looming.
* "Every one admits they are very short, buying practically from hand to mouth after covering part of the first quarter at the end of last year," a report said from the Mercolleida agricultural exchange.
* "But the quarter is drawing to a close and April looks totally uncovered, so every one is eyeing - presumably very low - feed consumption in February, to see if they can eke out March positions into April."
* Prompt feed wheat in leading grains port Tarragona was quoted at 222/224 euros/tonne, ex-store, up 0-2 euros from Friday.
Источник - http://af.reuters.com/
