European wheat futures rise

European wheat futures rose on Monday on the back of weather-fuelled gains in Chicago, but a backdrop of sluggish export demand kept a lid on the market. March milling wheat on the Paris-based Euronext exchange settled 1.25 euros, or 0.8 percent, higher at 160.25 euros a tonne.
The opening of a chart gap to the upside created some impetus in morning trade but spot prices failed to reach last week's high of 160.75 euros. Chicago wheat climbed around 2 percent as concerns about parched crop conditions in the U.S Plains returned to the fore.
"Matif (Euronext) is tracking the trend in Chicago and not paying too much attention to the fundamental supply and demand situation," Sebastien Poncelet of consultancy Agritel said. "Higher Russian prices are helping a bit but we're still a way off being competitive and not likely to sell to Egypt very soon," he added. Ample Russian supplies have curbed European Union exports this season, notably to major importer Egypt, although a recent rise in Russian prices has underpinned the EU market.
French port data showed few wheat shipments scheduled for non-EU countries.
In Germany, the main demand was still coming from the domestic animal feed industry rather than exports, with feed wheat again quoted higher than milling wheat.
Standard bread wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5.5 euros over Paris March. On the South Oldenburg market, feed wheat for February onwards delivery was offered for sale at 168 euros a tonne, with buyers seeking 167 euros.
In Poland, prices were supported in the past week by reluctant farmer selling. "Flour mills and feed makers seem to have enough supply cover for the next four weeks or so and export shipments are still minimal," one Polish trader said.
"Lack of selling by farmers is sometimes making it difficult to gather supplies to cover previous sales to mills and feed plants." Polish millers are offering to pay 640-660 zloty a tonne (153.2-158 euros) for 12.5 percent protein wheat for February delivery, unchanged in the last week.
Feed mills were offering to pay an unchanged 630-660 zloty a tonne for nearby delivery wheat, also unchanged on the week. Exporters were offering to buy 12.5 percent protein wheat for February delivery to ports at an unchanged 670-675 zloty a tonne.
Market participants were also assessing a cold spell. Parts of eastern Poland saw lows down to minus 10 degrees Celsius with little snow cover, but it was too early to predict any damage to crops, the trader said.