HAMBURG: European wheat prices rose on Wednesday, underpinned by an export-boosting fall of the euro to a six-week low against the dollar and technical chart support, traders said.
Benchmark May milling wheat
on the Paris-based Euronext exchange unofficially closed up 1.0 percent or 1.75 euros at 175.50 euros a tonne, its high for the day.
"The market is buoyed by a currency effect and some technical elements but with no change to the fundamentals," a Euronext trader said.
The contract was finding technical support in a range between 175.00 and 174.50 euros a tonne.
Firm US wheat futures on Wednesday were also driving European prices higher, traders said.
German cash market premiums in Hamburg were firm, supported by continued export hopes.
Standard wheat with 12 percent protein content for March delivery in Hamburg was offered for sale at a premium of 4 euros over the Paris May contract against 3.5 euros over on Tuesday, buyers were seeking 3 euros over.
"There are expectations we could see new demand soon from buyers such as Saudi Arabia," one German trader said. "The weaker euro is a welcome development."
One ship is loading 60,000 tonnes of wheat for Saudi Arabia in a German port this week, traders said. Another has just sailed from Hamburg with 8,000 tonnes of wheat for Namibia.
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