EU wheat steadies in late trade in line with Chicago

PARIS: Euronext wheat futures steadied in late trade on Thursday in step with Chicago wheat that drew support from a rally in corn and soybeans.

Benchmark December milling wheat on Paris-based Euronext was trading flat by 1623 GMT at 202.50 euros a tonne. It had fallen to 201.00 euros in earlier trade after hitting a one week high on Thursday.

Dry conditions in Western Europe, which are hampering winter grain sowings, were also supporting prices. However, the overall winter grain area in the region was still expected to increase next season as farmers switch from sugar beet and rapeseed.

Wheat was steady on the Chicago Board of Trade after strong gains over the last two sessions on the back of tightening global supplies.

In Germany, cash premiums in Hamburg were little changed, with animal feed producers rather than exporters the main focus.

Standard bread wheat with 12 percent protein for September delivery in Hamburg was offered unchanged at 3 euros over Paris December.

"Farmers are concentrating more on their autumn grain sowings rather than selling their stocks. German export loadings remain at a very depressed level and demand overall is pretty thin," one German trader said.

"Feed wheat markets are the main trading focus because of firm prices, but the discovery of African swine fever in Belgium last week continues to be a great worry as any discovery of a case in Germany could sharply cut feed grain demand."

Feed wheat in Germany's South Oldenburg market for September/December was offered for sale well over milling wheat at around 215 euros a tonne, with buyers seeking 213 euros.