LONDON: European wheat futures rose on Thursday as a weaker euro and gains in Chicago futures lent support to prices.
December milling wheat on the Paris-based Euronext exchange was up 0.25 euro or 0.15 percent at 171.50 euros a tonne at 1605 GMT. Trade was thin due to a public holiday in parts of Europe, dealers said.
Prices were supported by gain in Chicago futures, which rose on fund short-covering and concerns about crop health in rain-soaked areas of the southern US Plains.
The euro also lent support as it fell against the dollar, improving export prospects for countries like France and Germany in the face of cheaper Black Sea prices for the upcoming season.
However, gains were capped by improving weather in Europe where rain earlier this month has stabilised crop conditions following dry, chilly weather in April.
"We have seen a lot of dryness and a bit of rain. Now the question is the temperature," said one dealer. "This will be the main driver until July. And unless there is a weather event, the prices and the volatility will stay low."
London feed wheat futures were also higher, with November up 0.18 percent at 141.25 pounds a tonne.
The International Grains Council lowered its forecast for European Union production in the 2017/18 season on Thursday by 400,000 tonnes to 149.9 million tonnes.
The revision was mostly due to a 1 million tonne cut in output for Spain, although higher production in France, Germany, Romania and Britain helped offset the bulk of the decline.
Russia, meanwhile, will have broadly the same amount of grain to offer the global market in the 2017/18 marketing year despite a smaller crop thanks to record stocks, SovEcon agriculture consultancy said on Thursday.
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