030401

French 2003 wheat crop up on dry weather worries

PARIS: French 2002 wheat crop prices were stable to slightly lower on Monday, subdued by a stronger euro, while the new crop was higher on fears that lasting dry weather could lead to crop damage, traders said.

"We are facing an exceptionally long period without rain. It has become urgent that the crop receives some rain," a trader said.

The euro jumped to its highest levels for more than two weeks against the dollar on concerns that the US-led war against Iraq would last longer than anticipated.

By 1500 GMT, Euronext Paris milling wheat futures were stable to higher, the front-month May stable at 110.75 euros per tonne and all contracts between November 2003 and May 2004 up between 0.50 and 2.00 euros.

On the cash market, standard-quality wheat delivered to Rouen in October/November was up one euro at 108 euros per tonne buyer but without sellers.

"Farmers are reluctant to sell. The dry weather could finish off the crop already weakened by the frost this winter," another trader said.

French weather forecaster Meteo France said on its website that there had been fewer than usual showers in March. Since March 5, it recorded no significant rainfall in France. On the contrary, the weather was very sunny, which made temperatures climb to unusual levels.

For the week to come, Meteo France forecast possible rainfall on Tuesday in France's main grain areas, although it stressed that precipitation would be moderate.

Feed barley was up one euro from last week at 98 euros per tonne, delivered to Rouen in a small volume.

"I don't see any new element favouring barley, unless a very attractive price," a trader said.

Maize on the other hand was down 0.50 euro at 110 euros per tonne FOB Atlantic from April to September.

On the futures market maize was almost untraded with only the front-month June down 0.25 euro at 119.50 euros per tonne.-Reuters