European wheat prices edged slightly higher on Thursday, rising for a third session in a row, helped by a rise on US markets and a low euro versus the dollar, making euro zone products cheaper on the world market. By 1520 GMT, benchmark January milling wheat futures on Paris-based Euronext were up 1.00 euro, or 0.6 percent, at 170 euros a tonne. At the same time, Chicago wheat was .4 percent higher on spillover strength from the corn market.
The spread between the November contract, which expires on November 10, and the January one narrowed with the front-month trading also trading at 170.00 euros, up 2.25 euros. Euronext will introduce new quality terms for its milling wheat futures with effect from its September 2017 contract, it said on Thursday, after a rain-hit crop this season highlighted the inadequacy of the current criteria.
The European Union this week granted export licences for 646,000 tonnes of soft wheat, taking the total since the start of the 2014/15 season to 9.1 million tonnes, up from 8.4 million tonnes cleared by the same stage last season. Ukrainian farmers have almost completed wheat sowing for the 2015 harvest, taking advantage of favourable weather, the agriculture ministry said on Thursday.
GERMANY German cash wheat premiums in Hamburg were little changed in a cautious mood as price strength in US markets caused uncertainty. Standard wheat with 12 percent protein content for delivery in Hamburg in January was offered for sale at an unchanged premium of 16.5 to 17 euros over the Paris January contract with buyers at 15 euros over.
"With huge US corn and soybean harvests now being gathered, the strength seen in US prices this week is causing uncertainty," one German trader said. "But the stronger trend in Paris this week has started to generate more farmers selling after a long period of slack sales." "Some buyers are expecting more downward pressure on prices when market attention returns to the bumper US crops." The weaker trend in the euro was also raising optimism about new German export sales, traders said.
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