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EU wheat steadies after U.S. data, cash premiums firm

Euronext wheat futures ended little changed after a bigger than expected cut in the U.S. government’s corn yield forecast helped prices recover from an earlier fall.

December milling wheat, the most active contract on the Paris-based Euronext exchange, settled 0.25 euro, or 0.1%, higher at 178.50 euros ($196.67) per tonne.

The contract remained stuck in a consolidation zone between a four-week low of 176.50 euros hit on Monday and a one-week high of 179.25 euros reached mid-week, futures dealers said.

The U.S. Department of Agriculture’s (USDA) revised U.S. corn yield outlook was lower than the average estimate in a Reuters poll ahead of the monthly crop report, pushing corn futures higher in Chicago.

However, spillover support from corn was offset by a rise in the USDA’s global supply outlook for wheat, partly due to it only making moderate cuts to expected output in Argentina and Australia, which have been affected by dry weather.

Earlier in the day, physical premiums were steady in France and increased in Germany as export demand continued to support cash markets, traders said.

Premiums at French ports held this week’s gains, supported by exports along with slow selling by farmers busy with rain-delayed sowing of winter cereals and harvesting of maize and sugar beet, brokers said.

In Germany, standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale at 2.0 euros over the Paris December contract, up from 1.50 euros over on Thursday.

Buyers were offering as high as 1.75 euros over Paris.
Source: Reuters (Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Susan Fenton and David Clarke)

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