European wheat prices rose on Thursday, tracking a rebound in Chicago futures following the recent steady decline, although a firmer euro helped to limit gains. December milling wheat on Paris-based Euronext, was 1.9 percent higher by 1718 GMT at 162.50 euros a tonne. They had fallen as low as 159.25 euros on Wednesday, a price unseen since September 12.
Dealers said there were mixed signals on whether the recent decline in prices would spark more exports as cargo loadings picked up in France while demand remained slow in Germany. "Wheat prices are stabilising after the significant decline observed in last days," analysts Agritel said, noting prices had fallen below production costs in many countries.
Agritel said the fall in prices should encourage buyers to increase purchases with the approach of winter generating climatic risks "even if by now there are no major worries". French port data showed a rise in the number of cargoes loading or waiting to load wheat, mainly to traditional destinations like Algeria, West Africa and other EU countries. That could help revive EU wheat exports which are now running 25 percent below last year at 6.6 million tonnes, official data showed.
A rise in the euro to a one-week high against the dollar on Thursday, however, reinforced concerns that the strength of the currency could hamper exports. "Export demand for German wheat remains thin with the euro stubbornly firm and we again have the unusual picture of internal market prices higher than prices in export ports," one German trader said. German cash premiums in Hamburg were hardly changed, with high prices offered for feed wheat from animal feed makers supporting north German prices in the face of slack export demand.
Standard bread wheat with 12 percent protein content was offered for sale unchanged at 2.5 euros over the Paris December contract for November delivery in Hamburg. Feed wheat in the South Oldenburg market was again quoted above milling wheat, offered for sale up 2 euros at 174 euros a tonne for November/December delivery, with buyers offering around 173 euros.
"In a line across north Germany between Berlin and Hanover standard wheat is priced around 170 to 173 euros a tonne today for nearby delivery, well above Hamburg prices," one German trader said. "This follows purchases by the German feed industry of wheat for nearby delivery at 173 euros a tonne on Wednesday."
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