European milling wheat futures rose to fresh contract highs on Tuesday as weather concerns and strong US prices kept the market on edge and offset news that Egypt had overlooked French wheat in a latest import tender. Paris prices drew strength in afternoon trade from a 2 percent jump for front-month Chicago wheat, which climbed to $8 a bushel for the first time since August on the back of Egypt's purchase of US wheat plus spread trading versus corn.
Volumes on Euronext remained light, however, with many operators taking year-end holidays and UK markets closed, and traders cautioned price levels would have to be confirmed when normal trading activity resumed next week. Like in Chicago, Euronext was also supported by technical trading, notably adjustments between January and May contracts.
January milling wheat was up 3.00 euros or 1.20 percent at 252.00 euros a tonne by 1721 GMT, after reaching a new contract high of 253.50 euros. March hit a new contract high of 250.25 euros before easing to trade up 2.00 euros or 0.81 percent at 248.25 euros. The prices represent highest levels for the Paris market since March 2008.
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