HAMBURG: European wheat futures in Paris were mixed on Tuesday as traders continued to adjust between old-crop and new-crop positions while awaiting direction from US Department of Agriculture (USDA) crop forecasts later in the session.
May milling wheat, the last delivery position for the 2016 harvest on the Paris-based Euronext exchange, was up 0.25 euros, or 0.1 percent, at 162.75 euros a tonne by 1502 GMT, steadying above a contract low of 162.25 euros set on Monday.
New-crop prices fell, giving up some of the wide spread that has developed in recent sessions. September was down 1.25 euros at 169.50 euros while the more active December position was down fell by 1 euro to 173.50 euros.
"Matif (Euronext) is in an interesting state, with open interest on May huge still," one futures dealer said. "The May/September spread has been hammered in the last week or so."
The USDA monthly crop forecasts due at 1600 GMT is expected to include upward revisions of estimates for South American corn and soybean harvests in line with other forecasters.
"If there are any bullish surprises though, things can really take off," the dealer said. "The net short position on CBOT is huge."
European traders were also assessing dry conditions in France, with the focus on whether showers forecast from the weekend would bring significant moisture to parched zones.
In Germany, cash market premiums in Hamburg were slightly firmer in response to the overnight fall in Paris and higher prices in other German regions, especially for feed wheat.
Standard wheat with 12 percent protein content for April delivery in Hamburg was offered for sale up 0.5 euros at 6.50 euros over the Paris May contract. Buyers were seeking 5.50 euros over.
In exports, a ship was loading 16,200 tonnes of German wheat for Morocco, traders said.
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