EU wheat markets flat

European Union wheat futures were little changed on Friday, ending a week that has seen prices stabilise as the market lacked the impetus to make a significant move in either direction. "Grain markets have been bereft of any fresh fundamental news and the daily price fluctuations have been largely due to foreign exchange movements," UK farmers co-operative Open field said in a market note on Friday.
Dealers said the market may continue to tread water ahead of next month's key crop report from the US Department of Agriculture although the progress of crops in Australia, where they are entering a critical phase, will be closely watched. Milling wheat futures in Paris edged up slightly with business dominated by liquidating and rolling forward of positions on November ahead of the expiry of the front month on November 10.
"We've been at these price levels for the past week," one futures dealer said. "People are continuing to watch the spread (between November and January) and are trying to exit November positions." Benchmark January milling wheat was up 0.75 euros at 208.00 euros a tonne by 1620 GMT, underpinned by support at a week low of 207.25 euros touched at Thursday's close. November was flat at 208.75 euros. Physical activity was quiet with export clients well covered until the end of the year and with the domestic trade also seeing a lull, traders said.
The falling off in domestic activity was partly due to logistical snags caused by strikes over pension reform in France that have disrupted road and rail transport, even if there was no major impact for now on grain trading, traders noted. "We're not at a critical stage yet," one cash broker said. "What could happen is that if wheat deliveries are delayed, that could delay transport of maize," she added, referring to the arrival of new maize crop from the ongoing French harvest.
Some export cargoes delayed by strikes at Atlantic coast ports, with two shipments due for Egypt still awaiting loading at Montoir port as of Thursday. Feed wheat futures in London were narrowly mixed with November off 0.50 pounds at 161.50 pounds a tonne.
Germany's market was lower, weakened by low demand and concern about the euro's overall strength. Standard new crop bread-quality wheat for October delivery in Hamburg was offered for sale down one euro at 209 euros a tonne with buyers at 206 euros.
Thin trade again meant prices were viewed as nominal in some parts of the country. "We are still seeing a market with both buyers and sellers unwilling to deal," one German trader said. "The market is drifting down and seeking new impetus. The euro's general strength at a level close to $1.40 is seen as burdensome to exports."
In Italy, soft wheat prices were flat or about 2 euros lower on the week due to sluggish local demand and pressure from falling prices on international markets, traders said. Bread quality wheat was traded in a wide range of 220-240 euros, ex-gate for prompt delivery in northern regions, with higher quality grain keeping stable prices while lower grade wheat dropped a couple euros, they said. Maize added 1 euro on the week to 210 euros a tonne, one trader said.