European wheat futures were higher on Wednesday on strengthening prospects for exports as rival Black Sea wheat fades from the market, despite a setback for French wheat in a tender from Egypt on Tuesday. * A strong close in Chicago on Tuesday, when U.S. wheat added more than 1 percent in a technical rally, also provided support to the Paris market, where trade was thin. * January milling wheat in Paris was up 1.25 euros or 0.6 percent at 205 euros ($280) a tonne at 1455 GMT. * The contract was holding within a range of 200 to 207 euros after hitting a three-week high of 206.25 euros late last week, dealers said. * Egypt, the world's biggest wheat importer, bought 120,000 tonnes of Russian wheat in a tender on Tuesday after buying French and Romanian wheat in a tender last week. * French wheat was heavily offered to Egypt but was too expensive. * Egyptian state wheat buyer GASC also said on Wednesday that Black Sea supplies were cheaper than French. * "It doesn't really mean that last week was a false start, but it is a warning that prices can't climb every time we sell a cargo to Egypt," one trader said. * Traders still expected French wheat to pick up more sales to Egypt as export availability of Black Sea wheat fades. * "We're coming to the end of their window," a futures dealer said of Black Sea origins. "We're getting into a complicated (winter) shipping period for Russia. There was also no Romanian wheat offered to GASC this time." * However, the setback in the GASC tender did weigh on cash prices in France, which were slightly lower on Wednesday, brokers said. GERMANY * German wheat premiums were marked down, holding outright prices steady as Paris rose, with physical demand slack despite good export prospects. * Standard new crop milling wheat for January delivery in Hamburg was offered for sale at 3.5 euros over the Paris March contract, down 0.5 euro. * "Demand is low from mills and exporters," one European trader said. "There is a brisk programme to load ships in Hamburg and Rostock, but this is old business. There is a lack of new export deals to provide impulse; farmers are reserved sellers." * Traders were cheered to see German wheat offered in Egypt's purchase tender on Tuesday after an absence of several months. * "German and other west EU wheat are gaining export competitiveness, but we need to see more signs of new sales rather than hopes of sales," another trader said. * Prices at 1455 GMT Product Last Change Pct Move End 2012 Ytd Pct CBOT wheat 653.25 3.00 +0.46 778.00 -16.03 CBOT corn 418.50 0.75 +0.18 698.25 -40.06 Paris wheat 205.00 1.25 +0.61 250.25 -18.08 Paris maize 173.00 0.25 +0.14 237.75 -27.23 Paris rape 373.00 0.75 +0.20 456.25 -18.25 WTI crude oil 93.52 0.18 +0.19 91.82 1.85 Euro/dlr 1.3538 * CBOT futures prices are in cents per bushel, Paris futures in euros per tonne, WTI crude oil in dollars per barrel.
