EU wheat prices climb on euro weakness, Chicago gains

LONDON: European wheat prices rose on Thursday, buoyed by gains in Chicago and a weakening euro which improved the competitiveness of European Union exports.

Firm prices in Argentina and Russia also boosted expectations of a pick-up in European exports in coming weeks.

Benchmark March on Euronext milling wheat futures were up 0.6 percent to 207.50 euros a tonne by 1727 GMT.

CBOT wheat prices rose on expectations that the pace of U.S. exports could also pick-up in coming weeks while weekly export sales of 754,000 tonnes were near the high end of trade expectations of 500,000 to 800,000 tonnes.

The euro fell against the dollar after the European Central Bank halted new bond purchases and promised to maintain policy support for the euro zone due to risks from trade tensions, Brexit and budget woes in Italy and France.

Traders also cited cautionary buying ahead of a meeting due to take place between Russia's agriculture ministry and grain exporters on Dec. 21, Interfax news agency reported.

"It seems to be a routine meeting but some traders are still of the opinion that some curbing will take place, shifting demand to other origins," one trader said.

Russia has been exporting at a heavy pace so far this season but shipments are expected to slow in the second part at a pace which traders were still trying to assess.

Still, Strategie Grains cut its forecast for soft wheat exports outside the bloc this season to 19 million tonnes, down from 19.5 million estimated last month, citing a lack of competitiveness of EU wheat on the world.

For next season, the consultancy forecast that next year's soft wheat harvest in the EU, including Britain, would rebound to a four-wheat high of 147 million tonnes.

Feed wheat futures in London were also higher with May  up 0.65 percent at 179.0 pounds a tonne.