HAMBURG: Euronext wheat rebounded on Monday, tracking gains in Chicago futures as traders assessed persisting dryness in some US crop belts and adjusted positions ahead of a US government acreage report later this week.
September milling wheat on the Paris-based Euronext was up 2.25 euros, or 1.1%, at 203.75 euros ($243.16) a tonne at 1625 GMT.
The front-month contract had slipped on Friday to its lowest since April 13 at 200.75 euros but found firm chart support at that level.
The hot weather forecast in parts of the US Midwest grain belts this week is causing concern about possible damage to yields.
Favourable winter-wheat harvest prospects across Europe and the Black Sea region have weighed on Euronext, although frequent showers in France have raised worries of some crop damage.
“There’s a bit of concern naturally, but wheat crops in much of the country aren’t ripe yet so conditions are still favourable,” a French trader said.
Cereal crop conditions in France declined in the week to June 21, while winter barley harvesting was starting, data farm office FranceAgriMer showed on Friday.
More showers are forecast this week, but drier conditions next week in western France could help maturing crops there, traders said.
In Germany, crop-friendly weather continued to boost hopes of a good wheat harvest this summer.
“Wheat has received a mix of high temperatures with some rain in the last week, especially in the northern export production regions,” a German trader said. “Temperatures were often around 30 degrees Celsius in Germany today and after such heat, wheat will no doubt need some water.”
“But cooler temperatures with showers are forecast for most of Germany up to Thursday, which is exactly what wheat needs.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale at around 1.5 euros under Paris December. Buyers were seeking 3 euros under Paris.
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