Paris wheat follows US markets up, Russian drop caps gains

HAMBURG: European wheat prices rose on Monday, following strength in US markets, but gains were limited by a fall in rival Russian export prices after a month of strength.

Benchmark December milling wheat on the Paris-based Euronext closed up 1.0 euro or 0.5% at 193.25 euros ($225.23) a tonne after falling to its lowest since Sept. 17 at 191.00 euros earlier on Monday.

Chicago most active wheat was up more than 1% in early Monday trade.

"French wheat is likely to continue to follow the trend and does not present any intrinsic downside potential because it is very, if not too, competitive," French consultancy Agritel said in a note.

Strong corn prices worldwide are also supportive, it said.

The Paris market is closely watching conditions in Russia.

Russian wheat export prices fell last week, putting the brakes on a month of rises. Russia badly needs rain to arrive within the next few weeks to help wheat sowings.

In Germany, there was optimism that more export sales could be made as some rival exporters are losing their price advantage.

"Exporters in the Baltic states and Poland are not looking as cheap as in past months following a heavy series of shipments in past weeks," one German trader said. "But German farmers are not currently aggressive sellers."

One more case of African swine fever (ASF) has been confirmed in a wild boar in the eastern German state of Brandenburg, Germany's agriculture ministry said on Monday.

Thirty-six cases have been discovered in total since the first, on Sept. 10. All were in wild animals with no farm pigs affected, the ministry said.

"There is not really much of a grain market impact from ASF," the trader said. "But there is great worry about damage to demand should ASF spread to farm animals."