November 15, 2011 / 1:54 PM / in 6 years

EU milling wheat up, eyes on US market, macro economy

MILAN, Nov 15 (Reuters) - European milling wheat futures rose slightly
on Tuesday in light and hesitant trade with the market focused on Chicago,
exchange rates and the macroeconomic mood and trade lacking fundamental elements
as drivers, traders said.	
    * The ongoing turmoil in euro zone debt markets led to widespread risk
aversion with European stocks falling, U.S. stock futures pointing to a weak
start on Wall Street and the euro easing against the dollar and the safe-haven
    *"We move in line with the U.S. market and the macro with a relative support
of the euro and crude oil which remains expensive but without getting out of the
range in which we have been for several weeks," one trader said.	
    * Euronext front month January milling wheat was 1.00 euro or 0.55
percent higher at 183.75 euros a tonne by 1322 GMT, within the range of 180-190
euros a tonne mentioned by traders.	
    * The wheat cash market was also quiet as it waited for the results of
Algeria's tender for 50,000 tonnes of milling wheat which could favour Latin
American wheat like Uruguayan, Paraguayan, Argentine, which are more competitive
than French wheat. 	
    * "They (the Algerians) could take advantage of the gap of around $10 to buy
a large amount," an exporter said.	
    * More export news came from Tunisia, where France expects to sell 400,000
tonnes of soft wheat in 2012, a senior official at the French grain exports body
told Reuters on Tuesday, unchanged from forecasts for 2011. [ID: nL5E7MF2G1] 	
    * Chicago wheat and corn edged higher in hesitant trade after recent falls,
with competitive offers from the Black Sea region weighing on U.S. grains, while
soy rose to near one-week high supported by harvest-delaying rains and
expectations of strong demand led by China, the world's top buyer. 	
    * Feed wheat futures in London were lower with May down 0.75 pounds
or 0.49 percent at 151.00 pounds a tonne during afternoon trade.	
    * "The problem is the market has been moving sideways on risk aversion.
You're not really trading wheat, you're trading the outside markets at the
moment," said a London-based broker.	
    * Dealers said there was plenty of wheat to satisfy global demand despite
some supply issues on a domestic basis.	
    * "What you've seen today is a little bit of selling as the market accepts
the fact that wheat prices are probably not going to go up very far from here
for now," said the broker.	
    * Wheat prices in Italy, a major grain buyer in Europe, were little changed
ahead of a key weekly trade at Milan's cereals exchange later on Tuesday.	
    * Bread quality wheat was traded at around 210-212 euros a tonne for prompt
delivery without delivery charges, while higher grade wheat was traded in a
range of 230-240 euros a tonne, depending on protein content and other features
and little changed from the end of last week, traders said.	
 * Prices as of 1322 GMT
  Product             Last    Change   Pct Move End 2010 Ytd Pct 
  Paris wheat         180.75     1.00    +0.56   248.75   -27.34
  London wheat        147.50    -1.25    -0.84   202.00   -26.98
  Paris maize         187.50     0.50    +0.27   234.50   -20.04
  Paris rape          413.00     3.00    +0.73   484.25   -14.71
  CBOT wheat          638.00    -0.25    -0.04   820.75   -22.27
  CBOT corn           646.75     3.50    +0.54   636.50     1.61
  CBOT soybeans      1203.25    14.50    +1.22  1403.00   -14.24
  Crude oil            97.79    -0.35    -0.36    91.38     7.01
  Euro/dlr              1.35    -0.01    -0.64     1.34     1.19
 * All grain and oilseed prices for second position. Paris futures prices in Euros per tonne, London 
 wheat in pounds per tonne and CBOT in cents per bushel.
 (Reporting by Valerie Parent in Paris, Sarah McFarlane in London, Svetlana
Kovalyova in Milan; editing by Keiron Henderson)

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