Sunday, July 29, 2012

EU wheat prices slip, harvest outlook improves

grainmarketnews_wheat5_001Reuters - Wheat prices in western Europe fell sharply on Monday, dented by a setback in financial markets linked to the deepening debt crisis in Spain, while sunnier weather looked set to lead to a pick-up in the pace of harvesting in the region.

* "It is now hoped the barley harvest will resume throughout the country this week," one German trader said. "Sunshine will be welcome news for wheat, which needs to be pushed to ripeness ready for harvesting in the second half of August."

* Benchmark November milling wheat on the Paris-based futures market was down 3.50 euros or 1.3 percent at 266.25 euros a tonne by 1301 GMT.

* It last week touched a contract high of 271.50 euros as it notched up a weekly rise of 11 euros.

* "In a market that rose so steeply it is normal to catch your breath," a French dealer said. "Harvesting is also starting to get into gear in France."

* Persistent rain in late spring and early summer has raised fears of damage to crop yields and especially quality.

* The market is watching for clearer signs of the quality of France's main wheat crop but the arrival of hot, sunny weather this week in northern grain belts has reassured operators.

* November feed wheat futures in London were off 3.50 pounds or 1.8 percent at 191.00 pounds a tonne.

* "The market has more of a cautious mood after the dramatic rise in domestic and global prices in the last month," one German trader said. "German prices remain well over Paris following recent export demand, although the export side looks quieter today.

* Standard milling wheat for September delivery in Hamburg was offered for sale down one euro on late Friday levels at 272 euros a tonne, with buyers at around 270 euros.

* Germany has had repeated rain in past weeks, stopping the barley harvest and creating concern about quality damage to wheat. Sunshine reappeared after a damp weekend on Monday and dry, sunnier weather is forecast to continue up to Friday.

* German feed wheat for nearby delivery in the South Oldenburg animal feed grains market near the Netherlands was again quoted over milling wheat, offered for sale down 1 euro at 278 euros a tonne for nearby delivery, with buyers at around 275 euros.

* Strong demand has kept German feed wheat prices above milling wheat in past months.

* Rapeseed futures were also lower, under pressure from their lead markets, U.S. soybeans and crude oil, and harvest progress in France.

* "In rapeseed, people are realising that yields are not as bad as feared," the dealer said of the French crop.

* November rapeseed was down 5.00 euros or 1.0 percent at 518.25 euros a tonne. (Reporting by Nigel Hunt in London, Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Alison Birrane)

Source: Reuters

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