PARIS: European wheat prices rose on Monday, supported by Saudi Arabia's large wheat purchase, raising the prospects of new-crop demand for high-protein European Union origins along the Baltic Sea but trade was subdued by the closure of US markets.
Benchmark September milling wheat on Paris-based Euronext, closed 1.2% higher to 213.75 euros a tonne.
A warm spell expected in many parts of Europe in the first half of June was seen as beneficial for plant development after recent cool temperatures but a long-lasting lack of rain could become problematic, one trader said.
In Germany, traders were not optimistic that German wheat would be used to supply much of the large purchase of 562,000 tonnes of wheat in a tender from Saudi Arabia on Monday.
"I think a big slice of the Saudi purchase will be sourced from the Baltic States with a lot coming from Lithuania and perhaps also some from Poland," one German trader said.
"I have the impression export houses will supply the tender from existing long positions and the purchase is not really making waves in the market today."
There was also disappointment that the Saudi purchase was below the 720,000 tonnes originally sought, with traders saying the buyer may be hoping for a further fall in prices from peaks in late April.
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 1.5 euros under Paris December. Buyers were seeking 3 euros under Paris.
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