PARIS, Sept 29 (Reuters) - Western European wheat prices were little changed on Thursday as slow farmer sales and subdued export demand deprived the market of volume and clear price direction.
December milling wheat
CME Group's December EU wheat contract
"Liquidity in futures remains light. With the small French harvest, farmer sales are much lower and so their hedging needs are much more limited," one trader said.
Caution prevailed in Chicago futures as investors adjusted positions ahead of closely watched U.S. grain stocks data on Friday, with European prices also consolidating.
Weekly European Union data showed 469,000 tonnes of soft wheat export licences, keeping the volume so far this season 13 percent above the level of a year ago.
But early season EU exports have been boosted by Romania and traders said activity in France and Germany was light.
"Export demand is not very inspiring and the next main hope is how much of Algeria's 700,000 tonne wheat purchase earlier in September for October/November shipment will be loaded in Germany," one German trader said.
"Cheap offers for wheat to Algeria are coming from Poland and the Baltic States, but there is hope some French exporters will buy replacement supplies for French wheat in Germany."
"Market talk is that French exporters have just purchased two shiploads of 11 to 11.5 percent protein wheat for nearby shipment from Hamburg."
France is usually the dominant wheat supplier to Algeria, but traders expect this year's poor French harvest to lead exporters to use other origins for sales to the North African country.
German cash market premiums in Hamburg were little changed, partly reflecting slow demand from mills that had good short-term cover.
Standard wheat with 12 percent protein content for October delivery in Hamburg was offered for sale at an unchanged 1.5 euros over the Paris December contract. Buyers were seeking 0.5 euros over Paris.
(Reporting by Valerie Parent and Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by David Goodman) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
December milling wheat
CME Group's December EU wheat contract
"Liquidity in futures remains light. With the small French harvest, farmer sales are much lower and so their hedging needs are much more limited," one trader said.
Caution prevailed in Chicago futures as investors adjusted positions ahead of closely watched U.S. grain stocks data on Friday, with European prices also consolidating.
Weekly European Union data showed 469,000 tonnes of soft wheat export licences, keeping the volume so far this season 13 percent above the level of a year ago.
But early season EU exports have been boosted by Romania and traders said activity in France and Germany was light.
"Export demand is not very inspiring and the next main hope is how much of Algeria's 700,000 tonne wheat purchase earlier in September for October/November shipment will be loaded in Germany," one German trader said.
"Cheap offers for wheat to Algeria are coming from Poland and the Baltic States, but there is hope some French exporters will buy replacement supplies for French wheat in Germany."
"Market talk is that French exporters have just purchased two shiploads of 11 to 11.5 percent protein wheat for nearby shipment from Hamburg."
France is usually the dominant wheat supplier to Algeria, but traders expect this year's poor French harvest to lead exporters to use other origins for sales to the North African country.
German cash market premiums in Hamburg were little changed, partly reflecting slow demand from mills that had good short-term cover.
Standard wheat with 12 percent protein content for October delivery in Hamburg was offered for sale at an unchanged 1.5 euros over the Paris December contract. Buyers were seeking 0.5 euros over Paris.
(Reporting by Valerie Parent and Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by David Goodman) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
