HAMBURG: European wheat rose on Monday, supported by fresh gains for US grain futures and continuing demand from wheat importers.
March milling wheat, the most active contract on the Paris-based Euronext exchange, was up 1.50 euros, or 0.7%, at 210.25 euros ($248.60) a tonne at 1708 GMT.
Wheat futures in Paris and Chicago again drew support from a continuing rally in US soybeans and corn linked to brisk exports and crop concerns in South America.
Physical grain premiums in France held firm as Chinese demand continued to absorb a large part of a reduced French surplus this year.
"It remains a tough market for buyers," a French trader said. "We're clearly going to have high premiums for the season."
Weekly data showed European Union and British soft wheat exports so far in 2020/21 were down 20% versus a year ago at 9.19 million tonnes.
Favourable conditions in November have helped EU farmers complete cereal sowings.
In Germany, premiums in Hamburg were again firm with continued hopes for new export sales.
Standard bread wheat with 12% protein for December delivery in Hamburg was offered for sale at about 4.5 euros over Paris March against 4 euros over on Friday.
"The export outlook remains positive although it is disappointing to see Black Sea prices falling again," one German trader said.
"But international demand remains strong, with Pakistan buying 340,000 tonnes of wheat in a tender today and Tunisia also tendering for wheat."
Traders earlier reported a shipment of 65,000 tonnes of wheat to be loaded in Germany for Pakistan in November.
With uncertainty about a Brexit trade deal continuing, regular shipments of German wheat continue to Britain. Two ships each with about 3,000 tonnes of wheat have sailed from Germany for Britain in the past days, traders said.-Reuters
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