PARIS: Paris wheat futures rose on Friday as weakness in the euro and a slight bounce in Chicago prices helped the European market recover some of its sharp losses from this week.
Favourable harvest prospects in the northern hemisphere and falling new-crop export prices in the Black Sea region were continuing to limit upside on Euronext.
Showers in Europe this week was also tempering immediate concern about drought although more rain was seen as needed to help crops in dry soils.
New-crop September milling wheat on the Paris-based Euronext exchange settled 1.50 euro, or 0.9 percent, higher at 173.25 euros ($193.24) a tonne.
It was recovering from a life-of-contract low of 171.00 euros touched on Thursday, which also marked a one-year low for a second-month price.
Front-month May wheat ended 1.50 euros higher at 183.50 euros a tonne, after falling this week to a six-week low at 181.25 euros.
The euro fell to another low in almost two years against the dollar before steadying. Chicago wheat pulled away from contract lows struck a day earlier.
"For new-crop prices, after the slide we're seeing a bit of consolidation," one futures dealer said.
"The question is going to be whether the rain concerns in the EU can limit price pressure in the face of what is shaping up to be a bumper Russian harvest."
Favourable growing conditions for Russian and also US wheat have underscored an outlook for ample global supply.
The European Commission lifted its forecast of EU common wheat production in 2019/20 to 141.3 million tonnes, up 10 percent from last year, from 140.2 million last month.
Showers have brought some relief to thirsty wheat crops in the EU, but more rain will be needed in the coming weeks to avert a second year of drought, analysts said.
Farm office FranceAgriMer cut its rating of French soft wheat crops to 79 percent good/excellent for the week ending April 22, down from 81 percent the prior week.
Traders said they would be monitoring how much rain would fall in western Europe in the coming days, with concern growing in Germany about renewed drought after last year's torrid conditions.
In exports, the European Commission increased its forecast for EU soft wheat exports in the current 2018/19 season to 21 million tonnes from 19 million last month, reflecting an upturn in activity in recent weeks.
For the new season that starts in July, traders were awaiting the results of a Saudi import tender that could bring sales for high-protein EU wheat suppliers like Germany.
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