EU wheat futures rise to four-week high

European wheat futures rose on Wednesday to a four-week high as an export-boosting weakness in the euro for much of the day lent support. But prices held within a technical range, capped by hesitant Chicago futures ahead of closely watched world crop estimates from the US Department of Agriculture (USDA) on Thursday, and by some selling by French co-operatives at what were seen as attractive levels.
March milling wheat on the Paris-based Euronext exchange unofficially closed up 1.75 euro or 1.03 percent at 171.50 euros a tonne, its highest since January 9.
"While the market awaits tomorrow's USDA report, the euro and to a lesser extent the oilseed complex are giving a helping hand to European cereal prices," one Euronext dealer said. The euro extended losses against the dollar on Wednesday, amid worries about political risks in Europe, before steadying.
Oilseed futures extended gains, helped by positive export sentiment in the US soybean market.
May rapeseed on Euronext unofficially closed up 2.75 euros at 419.25 euros a tonne to approach a contract high of 421.75 euros.
German cash market premiums in Hamburg were little changed with export hopes supporting.
Standard wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at 5.5 euros over the Paris March contract, buyers were seeking 4.5 euros over.
"Two ships are each about to load 60,000 tonnes of wheat for Saudi Arabia in Germany in coming days," one German trader said. "While the line-up of vessels to load wheat in German ports is otherwise slowing compared to past weeks, there are expectations of larger wheat loadings in the second half of February and in March."
Hopes are also rising that part of Saudi Arabia's hefty 1.5 million tonne purchase of feed barley in a tender on Monday could be sourced in Germany.
"I expect two or three shiploads of the Saudi barley purchase to be sourced in Germany, the trader said.