EU wheat little changed, stronger euro weighs
*The euro rose from a seven-week low on Monday on hopes of progress on the sovereign debt crisis ahead of a European Union summit next week although investors are sceptical about the likelihood of decisive action. * The recent fall in the euro against the dollar has helped euro zone origins become slightly more attractive on export markets. * "The export outlook is not good and the recovery of the euro today will be a new hurdle to new sales," said the trader. * Front month January milling wheat futures in Paris stood 0.50 euros or 0.3 percent lower at 180.50 euros a tonne at 1724 GMT as the strength of the European currency helped the market turn lower after an earlier advance to 185.50 euros. * Dealers said the market was looking to consolidate after the contract slid about 18.5 percent from a late August peak of 216.50 euros to a low last week of 176.50 euros. * "Investors remain nervous most of all against a background of year-end closing of positions," said analysts at French farm consultancy Agritel. "The key for price direction will continue to depend on macroeconomic developments for a while longer." * Feed wheat futures in London were higher with January up 0.75 pounds or 0.5 percent at 143.00 pounds a tonne. * Dealers said supplies of feed wheat remained ample with recent mild weather helping to curtail domestic demand. * A slight decline in the value of sterling against the euro, however, boosted the outlook for exports to the euro zone, the destination for the bulk of UK shipments. * The stronger euro also capped gains in Germany. * Standard new crop bread-quality wheat for January delivery in Hamburg was offered for sale up one euro on late Friday business at 190 euros a tonne with buyers at around 187 euros. SLUGGISH EXPORT OUTLOOK * "The international price strength is providing the support today although premiums over Paris are slowing because of the sluggish export outlook," one German trader said. "In the past week German buyers only covered their immediate needs because of the expectation of weaker prices and I think we will see the same pattern this week." * German prices have held well over Paris levels in recent months following a disappointing German harvest this summer. * "Regional traders and farmers are taking a relaxed view of the recent price weakness possibly because a lot of sales have already been made in some regions and remaining stocks are relatively small," the trader said. * Low water levels on the Rhine and Danube rivers in Germany continued to cause transport problems. An exceptionally dry November has caused water levels on both rivers to fall sharply. * Shipping costs along the Rhine are at about double the normal levels, traders said. Efforts are being made to delay shipments or to transfer freight to road transport, the head of the German inland waterways shipowners' association said. * Iraq issued a tender on Monday to buy a minimum of 50,000 tonnes of wheat and 30,000 tonnes of rice from all origins, a spokesman for the Iraqi grain board said. * European rapeseed futures were higher with front month February up 4.75 euros or 1.2 percent at 415.75 euros a tonne. Copyright Reuters, 2011