EU Wheat Markets Little Changed, Weaker Euro Supports

• March wheat on the Paris Euronext market was unchanged at 204.50 euros at 1123 GMT.
• “The market is seeing some support from the weaker euro today, which is helpful for euro zone exports,” said Arnaud Saulais of SCB Commodity Brokers.
• “But the mood is cautious and trading volumes are very thin with the U.S. markets closed for most of the European trading day. In this environment small purchase or sales orders can move prices.”
• Chicago grains markets reopen at 1430 GMT after the closedown for the New Year’s day holiday.
• German wheat premiums were unchanged with lack of market participation in the holiday season making prices nominal in parts of the country.
• Standard milling wheat for January delivery in Hamburg was offered for sale unchanged at 3.5 euros over the Paris March contract.
•  “Trading will not get back to normal until next week as so many market players are still on holiday while there is a risk-off mood today with the U.S. markets closed until late afternoon in the European session,” one German trader said.
• “The market is now starting to lift its focus onto the USDA (U.S. Department of Agriculture) world grain supply and demand forecasts on Jan. 10, which will be released on the same day as separate important USDA reports about grain stocks, crop production and U.S. wheat seedings.”
• “These reports could sharply move international grains markets and the mood is likely to be cautious until the details of the reports are known.”
• There is also some uncertainly about feed wheat demand in parts of Europe, with unconfirmed market talk that U.S. corn shipments destined for China have been resold to Spain and Portugal.
• U.S. corn exports to China have slowed as Beijing continues to reject cargoes containing an unapproved genetically-modified corn type, compelling U.S. exporters to switch shipments to other destinations. (Full Story)
• “If the talk about the U.S. corn shipments being transferred to Spain and Portugal are confirmed, this could mean less demand for feed wheat. Ukrainian corn earmarked for Spain and Portugal will have to find a market elsewhere, also depressing feed wheat demand,” another trader said.

Prices at 1123 GMT

Euro/Dlr = 1.3694

CBOT futures prices are in cents per bushel, Paris futures in euros per tonne, WTI crude oil in dollars per barrel.

Reporting by Michael Hogan

Editing by Anthony Barker

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