EU wheat prices mostly steady

European Union wheat prices were mostly steady on Tuesday with the market keeping a close watch on volatility in currency markets. "With little change in other wheat market fundamentals, currency is still primarily driving the market," one French trader said.
An early rally in the value of the euro helped to weigh on the market although the European currency resumed its slide later in the day. The euro fell to a session low below $1.23 on Tuesday after US stocks accelerated losses and a source told Reuters Chancellor Angela Merkel plans to announce Germany's ban on short-selling.
Dealers said the market derived some support from a lack of rainfall in northern France and forecasts that it should remain dry for the next 10 days. Low temperatures in western Europe were also seen limiting yield potential. November milling wheat in Paris settled down 0.25 euros at 141.00 euros a tonne.
Feed wheat futures in London rose, however, as the weakness of sterling provided a further boost to export prospects with old crop stocks already tight. Sterling dipped versus the dollar on Tuesday as investors shrugged off stronger-than-expected UK inflation data, which failed to dent expectations that interest rates will probably stay at very low levels for some time.
July feed wheat rose 1.60 pounds to 106.75 pounds a tonne. In Italy, bread quality soft wheat added one euro on the week because of tight domestic grain supplies and increased import prices, while maize gained one euro on concerns about smaller new crops because of bad weather, traders said.
Base quality bread wheat rose to 151-154 euros a tonne for prompt delivery in northern regions, including delivery charges, in line with a one-euro gain in wheat imported from the EU, data from a key weekly session at Milan's cereals exchange showed. Maize prices added 1 euros on the week to 155.5-156.5 euros a tonne, according to Milan's bourse data.
Rainy weather in the past couple of weeks has delayed maize sowing in key producing areas in Italy, Europe's second-biggest producer after France, and grain varieties with shorter growth cycles but lower yields would be planted now, meaning crops were likely to fall this year, traders said.