HAMBURG: European wheat futures in Paris rose on Tuesday, supported by firmer US markets and expectations of a smaller-than-expected crop in rival exporter Russia.
A public holiday in France on Tuesday kept some participants away.
September milling wheat on the Paris-based Euronext exchange was up 1.00 euro, or 0.5%, at 185.75 euros ($211.57) a tonne at 1505 GMT. The contract on Friday hit 189.75 euros, its highest since May 21.
US wheat futures in Chicago rose 1.2% in early Tuesday trade supported by bargain-buying after recent falls.
Russia's Sovecon consultancy on Tuesday cut its forecast for Russia's 2020 wheat crop to 79.7 million tonnes from an earlier forecast of 80.8 million tonnes.
"Euronext wheat is receiving strength from rising Chicago markets today along with expectations we may see smaller than previously-expected wheat harvests in Russia and other parts of the Black Sea region," said Stefan Vogel, head of agricultural commodity markets research at Rabobank.
"Russia's wheat harvest is making progress, but Russian farmers do not look willing sellers with the harvest result looking uncertain and we have seen some harvest forecasts reduced in past days."
"For Russian spring wheat regions, weather forecasts also remain rather dry. Euronext prices are looking firm as it is still uncertain what wheat export volumes Russia will gather from this season's crop. Any reduction in volumes offered in export markets by Russia would be positive for European export sales."
In Germany, traders were taking a relaxed view of more rain forecast this week with Germany's wheat harvest expected to start at the end of July and early August.
"I think wheat in Germany is still looking fine and we could even see the next round of harvest forecasts increased slightly after the beneficial impact of recent rain," one German trader said.
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