Euronext wheat futures were little changed on Tuesday in a slow pre-holiday market as traders weighed up the risks of weather damaging US crops against big global supplies. March milling wheat on the Paris-based Euronext exchange was unchanged at 161.25 euros ($190.47) a tonne at 1652 GMT. Wheat has drawn support this week from forecasts of freezing weather in the US Plains that could hurt crops already enduring dry conditions. "There's really little going on and no one's expecting much until the end of the year," one futures dealer said.
"Wheat stocks are so big that to change things you would need a major shock in terms of fund (investment) flows, a macro event or a mishap with the Russian crop." Activity in France was thin, with year-end meetings of agricultural cooperatives continuing to keep some participants away from their desks, while other players were closing their books before the Christmas and New Year period.
In Germany, the slow pace of exports was again keeping some internal market prices higher than in export ports as the market also slowed before Christmas. Standard bread wheat with 12 percent protein content for January delivery in Hamburg was offered for sale unchanged at 3.50 euros over Paris March.
Feed wheat prices in Germany's South Oldenburg market were once more well above milling wheat, with January delivery offered for sale at around 173.50 euros a tonne, with buyers at about 172 euros. Feed wheat prices of up to 175 euros a tonne for January delivery were reported in parts of north Germany. "Markets are starting the slowdown towards the Christmas break," one German trader said. "Demand for exports in Germany remains pretty restrained."
"Animal feed makers are again offering the highest prices. Farmers are reluctant sellers as Paris prices have been on a steady downward trend since the end of September and there is unwillingness to sell at current low levels."
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