Paris wheat futures rose on Thursday as traders looked beyond forecasts for record US corn and soyabean production, and a lower euro lent some support to European prices. Firm export premiums in France, linked to limited supply after this year's poor French wheat harvest, were also underpinning futures, traders said.
December milling wheat on Paris-based Euronext, settled up 0.75 euro or 0.5 percent at 161.50 euros per tonne. CME Group's December EU wheat contract rose more sharply, adding 2.75 euros or 1.6 percent to 174.75 euros. Spot prices were also supported by adjustments ahead of next month's expiry of December futures, traders said.
The euro fell against the dollar as investors took a more positive view on the impact of Donald Trump's election as the next US president, making European grain more attractive to buyers. Grain traders also played down the importance of Wednesday's increased US corn and soyabean production estimates from the US Department of Agriculture (USDA), which was seen as confirming a well flagged context of ample supply.
Weekly European Union data showed the bloc exported 291,000 tonnes of soft wheat in the week to November 8, keeping the volume so far in 2016/17 ahead of the year-earlier level. In France, farm office FranceAgriMer made few changes to its wheat outlook in its monthly supply and demand estimate. But it cut grain maize production to a 26-year low and saw potential for a further downgrade due to poor yields and switching by farmers towards on-farm fodder maize.
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