PARIS: Euronext wheat futures rose on Friday, recovering from a one-week low a day earlier, as export hopes fuelled a rally in US wheat.
March milling wheat, the most active contract on the Paris-based Euronext exchange, settled 1.25 euros or 0.6 percent higher at 204.75 euros ($235.01) a tonne.
On Thursday it had slipped to its lowest since Jan. 3 at 203.50 euros.
Chicago wheat added around 1.5 percent amid expectations that competitively priced US supplies were attracting fresh demand.
Grain markets have been seeking indications of supply and demand in the absence of US crop publications that have been mostly suspended due to a partial shutdown of the federal government.
"In the absence of the data, bullish sentiment is building up in Chicago about possible US export sales," a futures dealer said.
European traders also cited renewed chatter that Russia could limit grain exports for the remainder of the season.
There has been regular speculation that Russia could restrict exports after rapid shipments in the first half of the season, but it has so far taken no action.
Russia notched up a large sale of wheat to Egypt in a tender on Wednesday, dampening recent hopes in western Europe that a dwindling Russian surplus would leave more room for other exporting countries.
For this year's European Union harvest, farmers have sown more wheat in the biggest production countries, partly because drought prevented rapeseed plantings, analysts and traders said.
In Germany, cash premiums in Hamburg were little changed, with export prospects remaining dull.
Strong feed demand after last summer's drought damaged fodder crops continued to support feed wheat.
Standard bread wheat with 12 percent protein for January delivery in Hamburg was offered for sale unchanged at 3.0 euros over Paris March.
Feed wheat in the South Oldenburg market for January onwards delivery was offered for sale above milling wheat at around 218 euros a tonne with buyers at around 216 euros.
"German port loadings are becoming more active but they are below volumes in past years and not enough to excite the market," a German trader said.
One ship is to sail from Germany next week with 50,000 tonnes of wheat for South Africa. This follows two earlier shipments to South Africa in past weeks of together 100,000 tonnes, he said.
One ship has also just sailed with 20,000 tonnes of German wheat for Brazzaville in the Republic of Congo.
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