PARIS: European wheat prices rose on Monday on uncertainty about final harvest results with French farmers reporting lower than expected yields.
Benchmark December milling wheat on the Paris-based Euronext was 1.25 euro or 0.8 percent higher by 1556 GMT at 165.25 euros a tonne.
"The market is still waiting for an assessment on the magnitude of the fall in wheat harvest yields. Will the harvest be at 30, 32 or 35 million tonnes?" one Euronext trader said.
Heavy rain and limited sunshine hurt crops in the European Union's biggest grain grower and results from the field have prompted forecasters to cut their forecasts over the past weeks to levels unseen since 2007.
Brokers and traders also pointed to short covering on prospects of a fall in quality of the French harvest.
Milling wheat premiums on the cash market stood at +7 euros per tonne over Euronext delivered in the port of La Pallice, in a region where first harvest results have shown good quality results in terms of protein, Hagberg falling numbers and specific weight despite a significant drop in yields.
In the northern port of Rouen the premium was lower, at +3 euros, as harvest results were more worrisome in the region.
German cash market premiums in Hamburg were flat, still underpinned by worries that rain will damage the quality of Germany's harvest this summer.
Standard wheat with 12 percent protein content for September delivery was offered for sale at an unchanged 2 euros over the Paris December contract. Buyers were seeking 1 euro over Paris.
"Our wheat needs dry weather and sunshine after so much rain this summer," one German trader said. "More sunshine is forecast in coming days but also showers later in the week, so the worries are not over yet. I think a decent harvest is on the way but with a lower protein content."
In Poland, recent rain in the north of the country also sparked worry about possible quality loss but prices were little changed in the past week.
"There are forecasts of more rain later this week and next week which is a concern," one Polish trader said. "Industry and exporters are waiting for the new crop, hoping it will turn out all right and so depress prices. Farmers are delaying sales of new crop as they are unhappy with current price levels."
Old crop wheat with 12.5 percent protein content is quoted at 620-650 zloty a tonne (141.5-148.3 euros) delivered to mills in July, unchanged on the week. New crop was quoted at 610-630 zloty a tonne delivered to mills ex harvest, down 10 zloty on the week.
"Old crop Polish wheat exports remain at a high level," the trader said. "I expect that some quantities of Polish wheat were sold to Algeria and also to Morocco with shipment in September-October."
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