LONDON Nov 29 (Reuters) - Wheat prices in western Europe
rose on Friday with Paris futures climbing to the highest in
more than six months as a low harvest estimate in Argentina
reinforced bullish export prospects for European wheat.
* January milling wheat on Paris Euronext was up
1.25 euros, or 0.6 percent, at 210.00 euros a tonne at 1704 GMT.
It earlier reached 211.00 euros, a level last seen on May 15.
* Friday's gains brought the front-month contract above
chart resistance at 210 euros. But dealers said the move
occurred in light volumes during a U.S. holiday and would have
to be confirmed when Chicago futures resume trading for a short
session later on Friday.
* Chicago grain futures, the global benchmark, did not trade
on Thursday or overnight on Friday due to Thanksgiving holidays.
* An official estimate of the Argentine wheat crop on
Thursday at 8.5 million tonnes, below the volume seen by some
private forecasters, confirmed poor harvest prospects that
should cut Argentine supply and shift demand to other exporters
like the United States and the European Union.
* "It was the news from the Argentine government yesterday
that sparked the rise," a dealer on Euronext said.
* Weekly EU data on Thursday also fuelled positive export
sentiment. The 28-country bloc awarded 577,000 tonnes of weekly
soft wheat export licences. This put the volume so far in
2013/14 more than 50 percent above the year-ago level and kept
the EU on course for a record total this season.
* This followed French wheat clinching a 60,000-tonne sale
to Egypt's state buyer in a tender on Wednesday.
* But sentiment was tempered by the modest volume bought by
GASC and that there were cheaper offers of U.S. and Romanian
wheat turned down because they did not meet the tender terms.
* German wheat premiums were stable with the good export
outlook again underpinning.
* Standard milling wheat for January delivery in Hamburg was
offered for sale unchanged at 3 euros over the Paris March
contract but with few buyers seen in the market.
* "The latest news about the poor crop looming in Argentina
is supportive along with the brisk rate EU export licences are
being demanded," one German trader said. "If the expectations of
a low crop in Argentina are confirmed, this could mean Argentina
will hardly play a significant role in the global export market
in coming months."
* "This could open up new opportunities for EU wheat sales
in several markets such as South Africa. Brazil, which imports
huge volumes from Argentina, would also be compelled to find
alternative supplies."
* Of the 577,000 tonnes of EU wheat export licences awarded
this week, 55,000 tonnes were taken in Germany.
* "The licences may not be used for German wheat but this is
a continued indication of underlying good export activity,"
another trader added.
* "Hopes are that Iran, a traditional buyer of German wheat,
will buy again in Germany in the next few weeks when sanctions
are relaxed. There were also new indications on Friday of
continued tight wheat supplies in China, which could mean more
Chinese imports in coming months."
* Feed wheat futures in London were higher with January
up 1.00 pound or 0.6 percent at 165.25 pounds a tonne.
* "Overall the UK market remains finely balanced with
cheaper feed alternatives almost certain to undermine price
levels as we move through the season," Frontier Agriculture said
in a market update on Friday.
* "While current price levels hold and quality premiums are
higher than we have seen since harvest, this must represent an
opportunity to sell from the perspective of the producer."
(Reporting by Nigel Hunt in London, Gus Trompiz in Paris and
Michael Hogan in Hamburg; editing by Tom Pfeiffer and David
Evans)