PARIS: European wheat futures rose on Monday to approach last week's 18-month high, supported by renewed weather-fuelled gains on the US market, while traders waited to see the impact of torrential rain on wheat quality in the French harvest.
December milling wheat, the most active contract on Euronext, was up 2.00 euros, or 1.1 percent, at 187.50 euros a tonne by 1557 GMT.
It earlier climbed to 188.75 euros, just shy of last week's peak of 189.00 euros.
Spring wheat futures fuelled gains in US prices as hot weather forecast in the northern US threatened to cause further damage to spring wheat crops.
In France, traders were assessing the potential consequences of heavy showers since Sunday, which brought record rainfall for a single hour in Paris.
Downpours in major grain belts in northern France could spoil quality of crops yet to be harvested, after some promising results in early harvesting in western France.
"The showers that came with the storms this weekend and today will put a stop to harvesting for several days in a number of regions," a French cash broker said.
"A wet spell reduces test weights and Hagberg levels for ripe wheat and can cause germination. So it looks like we'll have a market for lower-quality wheat in France once again this season. The question is how much of the final crop will be in this category."
Test weights and Hagberg numbers are two common measures of wheat's milling quality.
In its first estimate of this year's soft wheat crop, the French farm ministry on Monday pegged production at 36.2 million tonnes, up 31 percent from last year's weather-ravaged harvest but with yields limited by adverse spring weather.
In Germany, cash premiums for high protein wheat in Hamburg remained far above standard bread wheat on expectations damage to US spring wheat will create export opportunities.
High quality wheat with 14 percent protein content for September/December delivery in Hamburg was offered for sale at an unchanged premium of 22-23 euros over Paris December.
This was again far above standard bread wheat with 12 percent protein content, offered for sale at an unchanged 4 euros under the Paris December contract for September delivery in Hamburg.
In Poland, hopes for extra exports also supported prices in the past week, although as in Germany there were concerns recent rainfall may curb quality.
Exporters raised purchase offers by 15 zloty a tonne for 14 percent protein wheat to 765 PLN zloty a tonne (180.5 euros) for August/ September delivery.
Export prices for 12.5 percent protein wheat also rose by 15 zloty to 720 zloty a tonne for August/September delivery to ports.
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