AMSTERDAM: European wheat futures were higher in light trade as the market bounced after a sharp fall on Wednesday and ahead of closely watched US government crop estimates due Friday.
* Paris prices tracked a rise in US futures, which recouped some of their steep losses in the previous session when funds had liquidated positions in the run-up to Friday's world crop estimates from the US Department of Agriculture.
* The rise in Paris was more restrained as European prices were curbed by a stronger euro, which makes wheat from exporters like France more expensive on the world market.
* Operators were awaiting results of a tender by Egypt's state buyer, with US wheat seen as well placed to add to recent sales to Egypt because of its current price advantage.
* Benchmark May milling wheat was up 1.75 euros or 0.85 percent at 207.25 euros a tonne by 1232 GMT, after shedding 3.50 euros on Wednesday.
* "We're recovering a little after the technical correction yesterday in the run-up the USDA report," Helene Morin of French grains consultancy Agritel said. "We're not likely to have very wild trading today."
* Export demand continued to underpin prices, with French wheat expected to attract late-season demand from the likes of Morocco, despite US competition in Egypt.
* The cereals harvest in import-reliant Morocco could fall by half this year due to adverse weather, a state agricultural institute said on Wednesday.
* "Morocco is a factor that could come and shake up the market," Morin said.
GERMANY
* German wheat was little changed cautious, risk-off business ahead of the USDA crop forecasts on Friday. Firm German feed wheat prices once more provided background support.
* Standard quality milling wheat for March delivery in Hamburg was offered for sale unchanged at 215 euros a tonne with buyers at around 213 euros.
* "People are waiting to see the results of the USDA report tomorrow and until then there is a risk-off mood," a German trader said. "Flour mills have poor profit margins at current firm prices and only buy hand-to-mouth."
* "The euro is again firm and it looks like German wheat has not been offered in the GASC tender from Egypt today, the US is tipped to win the business."
* Increasing hope German grains escaped the cold snap in late January and early February without widespread damage was helping to keep new crop prices below old crop. New crop for September delivery was offered for sale around 199 euros at tonne with buyers around 197 euros.
* Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered for sale at 213 euros a tonne with buyers at around 211 euros.
SPAIN
* Spanish physical wheat prices have risen this week to catch up with recent gains on futures markets but dealers said volume was light as consumers sat on the sidelines while awaiting market-moving news.
* Dealers reported a seasonal lull in the livestock reproductive cycle had crimped demand, but farmers hanging on to dwindling supplies of old crop was supporting prices.
* "With prices where they are it's hard to pass them on, unless the markets change direction. We'll see what the USDA says tomorrow," a dealer said.
* Prompt feed wheat was quoted at 223-224 euros/tonne in leading grains port Tarragona , up 3-4 euros from Monday.
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