Paris spot wheat extends gains, new-crop prices subdued

PARIS: Front-month wheat futures on Euronext rose for a fourth day in a row on Thursday, supported by logistical bottlenecks at France's largest grain port, while new-crop prices inched down as traders awaited clearer indications about harvest prospects.

Benchmark May milling wheat on the Paris-based Euronext exchange settled 1.00 euros, or 0.5 percent, higher at 189.50 euros ($212.56) a tonne.

The contract earlier touched a new one-week high of 190.25 euros, but dealers said it failed to break clear of chart resistance at that level.

Traders said May futures, the last remaining position for 2018 harvest wheat, continued to be underpinned by tensions on the physical market linked to a busy loading programme at Rouen, France's largest grain port.

However, volumes remained light on Euronext and futures dealers said the strength in spot prices stood out in an otherwise subdued market awaiting clues about this year's harvests and trade talks between Washington and Beijing.

"It's been a wait-and-see session, particularly with regards to the conclusion or not of the U.S.-Chinese negotiations," one dealer said.

China and the United States were set to enter a fresh round of talks on Thursday to resolve a tariff dispute, with U.S. officials continuing to cite progress in the discussions.

Soybeans, a focal point of the trade talks, rose in Chicago with support from positive sentiment around the negotiations, while wheat was little changed.

Traders are monitoring the impact of flooding in the United States and dryness in parts of Europe, although showers in France this week have brought some needed moisture.

In Germany, cash premiums in Hamburg slipped as buyers declined to follow strength in Paris.

Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale at around 6 euros over Paris May against 8 euros over on Wednesday.

"A good volume of wheat exports are being loaded in German ports but much of this has already been purchased and a lot of ships only need minor supplies to compensate for a few non-deliveries," one German trader said.

"Demand from flour mills is slack as mills in turn seem to lack new contracts to supply flour. It seems that flour consumers expect falling prices after the mild winter and warm start to the spring. New crop wheat is in excellent shape and at this stage harvest prospects are good," the trader said.

However, the lingering effects of severe drought last year meant more rainfall was needed to replenish groundwater levels in Germany, traders said.