European Union milling wheat futures were slightly higher on Monday with the trade focused on the close of the options on the front-month contract. By 1548 GMT front month November was 0.75 euro higher at 185.50 euros a tonne after hitting 187.50 euros soon after the open.
The key support for the November contract remained estimated at 185 euros per tonne and at 178 euros per tonne for January, traders said. Options on November close on Monday, which could led to short covering on the futures market, traders said. "Options are the leading element today," one said. "There are no new fundamentals." On the November rapeseed contract, which closed on Friday, a high number of puts triggered a high short-covering on Monday morning that sent prices rocketing at the open, hitting 445.00 euros a tonne, a price last seen on September 21. By 1535 GMT the contract, which expires on October 31, was back at 438.00 euros a tonne.
The euro fell 1 percent against the dollar to a session low on Monday as investors continued to shun risk after the German Finance Minister said the upcoming European Union summit would not definitively solve the region's debt crisis. Chicago Board of Trade wheat futures rose, supported by forecasts for a return to dry weather in the parched southern US Plains, traders said.
On the French wheat cash market, port demand remained firm, due to strong export activity. Trade forecasts for the French maize crop are growing by the day, now at between 15 and 16 million tonnes, due to exceptional yields. The bumper crop is boosting exports with port activity showing maize shipments to North Africa, including Tunisia. Feed wheat futures in London were slightly higher with November up 0.50 pounds or 0.3 percent at 147.00 pounds a tonne.
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