Eu wheat prices mostly up

London  (january 23, 2011) : wheat prices in western european markets were mostly higher on friday, buoyed by an export-driven surge in us futures, although the strength of the euro against the dollar helped to cap gains. dealers said milling wheat futures in paris were also running into technical resistance after setting contract highs earlier in the week.
"the underlying trend remains bullish but in the short term we could see a correction occur," said maxime jouenne, analyst with french grains consultancy agritel. march millingwheat was up 0.75 euros or 0.3 percent at 259.50 euros a tonne by 1702gmt as it hovered close to a contract high of 261.50 euros touched on wednesday.
wheat-led a surge in cbot grain markets on friday following stronger-than-expected us weekly export data. however, a rising euro and much more modest european wheat export volumes this week compared to a big haul for us wheat helped to curb prices.
weekly european union data showed a sharp fall in wheat volumes after a big tonnage the prior week, although exports so far this season remained well up on the year. feed wheatfutures in london were also higher with the market supported by growing concern about supply tightness later in the season following the strong pace of exports.
dealers said uk wheat exports are believed to have reached about two million tonnes by the end of 2010, about double the pace of the previous season. "it is seven months to harvest and stocks look critically tight," uk farmers co-operative openfield said in a market note on friday. may feed wheat rose 0.75 pounds or 0.4 percent to 199.75 pounds a tonne.
germany's market was weaker in generally thin trade, with the stronger euro denting export hopes. standard bread-quality wheat for february delivery in hamburg was offered for sale down one euro at 259 euros a tonne with buyers at 257 euros.
"it looks like sluggish export demand will continue if the euro makes german wheat more expensive on world markets," one trader said. continued low demand from animal feed makers because of the health alert in germany about dioxin was keeping feed wheatprices well below milling wheat. feed wheat in the large south oldenburg market near the netherlands was offered for sale around 247 euros a tonne for february-june delivery.
german pig prices have collapsed following the discovery of the toxic chemical dioxin in animal feed, which triggered international health alerts and also hit sales of german eggs, traders said on friday. "feed makers are concerned about future feed demand at such low livestock prices," one trader said. in import-dependent spain, wheat retained prior gains in response to paris and chicago.
traders and industry sources said volume was too thin, however, to underpin a clear trend because consumers were turning to cheaper alternatives like maize and barley. "maize is the only raw material in which feed makers have covered their needs for the entire first quarter. others are covered only up till february," said jorge de saja, director of the spanish feed compunders' federation.
"maize is the only quote-unquote cheap raw material. a lot of it is physically present in spain and it is available in the eu, which explains why it is trading at the same price as barley, although it is much more interesting." prompt imported feed wheat in leading grains port tarragona was last quoted at 250/255 euros/tonne, up 3-5 euros for the week so far. maize is quoted at 242/243 euros/tonne.

(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1146631:eu-wheat-prices-mostly-up.html?hl=wheat)