European wheat futures rise

European wheat futures rose on Thursday, a third day of recovery from an 11-month low, following a jump in Chicago futures and a series of tenders from North Africa, but a stronger euro moderated gains. November milling wheat on the benchmark Paris futures market was up 1.00 euro or 0.49 percent at 207.00 euros ($270) a tonne by 1542 GMT.
"The delay in (crop) growth development in some production areas is also a prudence factor," French analyst Agritel said. The European Union cleared 247,000 tonnes of soft wheat export licences, taking the total this season to 17.6 million tonnes, much less than weekly wheat export sales reported by the US government.
Algeria bought 400,000 tonnes of milling wheat at $284-$285 a tonne, traders said. Wheat markets were continuing to assess evolving crop conditions across the European continent. In Russia, rain in some dry areas has reassured operators, but the sowing of spring wheat was being delayed by cool weather. In western Europe, the outlook for wheat remained variable, with crops flourishing in Germany and much of France while prospects remained bleak in Britain, analysts said.
In monthly estimates issued on Thursday, French-based analyst Strategie Grains cut slightly its outlook for this year's soft wheat harvest in the European Union and raised sharply its barley forecast. French maize prices gained at least 3 euros on the cash market over the past two days, buoyed by sales to South Korea and Turkey, which were attracted by its non-genetically modified corn. It was also supported by improved competitiveness due to lower supplies in Ukraine and the Constanza region.
In Germany, prices were supported by the recovery from recent lows in Paris and an improved export outlook. Standard new crop milling wheat for September delivery was offered for sale up 1 euro at 212.5 euros a tonne, with buyers at about 211.5 euros. Trade was reported at a premium of 4.5 euros over the Paris November contract.
"The export tender market is looking more brisk this week with France getting a good sale to Algeria on Thursday, with Tunisia also tendering and Libya still negotiating about buying milling wheat," one German trader said. "There is talk that Yemen has recently bought a consignment of German 12.5 percent wheat for June shipment, while a multinational trading house is also said to have made major sales of German wheat to Iran for August shipment." Wheat for May delivery in Hamburg was offered for sale unchanged at about 230 euros a tonne, with few buyers seen but some reported to be offering 227 euros.