PARIS: European wheat prices rose in thin trade on Wednesday, supported by technical factors and firm US markets, traders said.
December milling wheat on Paris-based Euronext, was up 1.25 percent by 1613 GMT to 161.50 euros a tonne.
Traders mentioned some spread trading between Euronext and the Chicago Board of Trade where wheat extended gains from its previous session, with the USDA's cut to expected supplies in Australia helping shift attention away from ample global inventories.
"The market is rising surprisingly because fundamentally there is no reason for that," a trader said, pointing to pressure from the large Russian wheat crop.
On the French cash market, farm office FranceAgriMer's large wheat export forecast was seen as an encouragement for sellers to stay out of the market in hope of better prices.
Still, FranceAgriMer stressed French wheat would need to remain competitive on the world market to meet its forecast for exports outside the European Union, at 10.2 million tonnes, more than double the volume shipped in 2016/17.
German cash premiums in Hamburg were again weaker in thin export demand after rain in August damaged Germany's harvest quality, with attention turning to high feed wheat prices.
Standard bread wheat with 12 percent protein content was offered for sale at 1 euro over the Paris December contract for September delivery in Hamburg against 1.5 euros over on Tuesday.
"It looks like Germany's wheat exports will be depressed in coming months with France, Poland and the Baltic States taking over the main north European export business," one German trader said.
"There is low demand in the Hamburg export sector today and attention is turning to internal markets, where feed wheat prices are higher than export prices for milling wheat."
Feed wheat in the South Oldenburg market was quoted above milling wheat at 169-170 euros a tonne for September/December delivery.
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