EU wheat rises in late trade, tracking U.S. market
PARIS, Feb 8 (Reuters) -European wheat prices rose in late trade on Wednesday , tracking U.S. markets, but traders said it remained pressured by strong competition from the Black Sea region.
Benchmark March milling wheat BL2H3 on Paris-based Euronext finished up 1.25 euros, or 0.4%, at 295 euros a tonne.
In its February World Agricultural Supply and Demand Estimates (WASDE) report, the U.S. Department of Agriculture raised its wheat harvest forecasts for the European Union, Russia and Ukraine by 500,000 tonnes each, to 37 million, 43.50 million and 13.50 million tonnes respectively.
World ending stocks for the current season were pegged at 269.34 million tonnes, above the average analyst estimate of 268.56 million tonnes.
Algeria’s state grains agency OAIC was believed to have resumed buying milling wheat on Wednesday in an international tender that originally closed on Tuesday, European traders said in initial assessments.
Initial prices were likely to indicate that wheat could be sourced from several suppliers including the western European Union, eastern EU/Black Sea region and Russia, they said.
Algeria is a key destination for French wheat.
"Looking at the initial prices reported in the Algerian tender, I doubt whether Germany or the Baltic region will be used to supply this time,” one German trader said.
“I think Germany’s main hopes for new export sales will be on more niche sales to North Africa and Sub-Saharan Africa.”
German wheat exports so far in February were headed by shipments to Morocco, with market talk that German wheat was being used to replace tight French supplies, he said.
Standard 12% protein wheat for February delivery in Hamburg was offered for sale at a premium of about 10 euros over the Euronext March BL2H3 contract.
Prices at 1743 GMT
Paris wheat BL2c1
Paris maize EMAc1
Paris rapeseed COMc1
CBOT wheat Wv1
CBOT corn Cv1
CBOT soy Sv1
WTI crude oil CLc1
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
Reporting by Sybille de La Hamaide in Paris and Michael Hogan in Hamburg
Editing by David Goodman
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