European wheat futures in Paris rose on Tuesday, as uncertainty over crop conditions in the Black Sea region, a weaker euro and firmness in Chicago generated a recovery from a six-week low hit on Monday.
December milling wheat on the Paris-based Euronext exchange was up 1.5 euros, or 0.8%, at 187.50 euros ($203.2) a tonne at 1615 GMT.
The contract found technical support as it filled a chart gap while recovering from Monday's low of 184.25 euros.
Old-crop May, which is approaching its expiry on May 11, was up 1.6% at 199.75 euros in thin volumes.
"Matif (Euronext) is stabilising with the idea that crop damage may have occurred in the Black Sea region," a futures dealer said, speaking of recent dry weather in the area.
"But there are worries about weak demand. The milling industry is not buying with the crisis and exports are quiet, with no sign of Egypt in a while."
Traders were waiting to see if very dry parts of southern Russia would receive rain forecast this week in the Black Sea zone.
Romania's wheat crop has been hit by prolonged drought and an estimate of the overall damage could be available as early as next week, Agriculture Minister Adrian Oros said on Tuesday.
French soft wheat shipments outside the European Union remained at a high level of over 1.5 million tonnes in April, an initial estimate based on Refinitiv loading data showed, keeping France on course for a record volume in 2019/20.
In Germany, attention was turning to the new crop with welcome rain in past days improving the harvest outlook.
Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale unchanged at around 0.5 euros under the Paris December contract. Buyers were offering around 1.5 euros under Paris.
Heavy rain in much of Germany in the past week has relieved market concerns about dryness stress to the new crop after a very dry April.
"For the time being I think concern about dryness is over in Germany," one German trader said. "But soil moisture reserves are still depleted and more rain is needed in the next few weeks to ensure a good wheat harvest."
Comments
Comments are closed for this article.