Euronext wheat futures rose on Tuesday as a rally in Chicago offset a sharp rise in the euro against the dollar. March milling wheat, the benchmark contract on the Paris-based Euronext exchange, was up 1.25 euros, or 0.7 percent, at 170.75 euros a tonne by 1639 GMT.
The contract earlier touched a one-week high at 171 euros but dealers said it was facing chart resistance at 170.75 euros. CME Group's March EU wheat contract was up 0.50 euro at 174.50 euros a tonne. Chicago wheat climbed around 2 percent as US grain futures rallied after a three-day holiday weekend, supported by a drop in the dollar and last week's lower than expected US government estimate of winter wheat sowings.
Cash premiums in France were firm, with brokers citing limited offers from producers since the start of the year. Traders were also continuing to monitor severe cold in Europe, with deep frosts spreading from central Europe to France, where snow cover was less substantial.
Temperatures fell below -10 Celsius in north-east France on Tuesday and central and eastern regions were expected to see lows of -5 to -10 Celsius in the coming days, public weather service Meteo France said. In Germany, cash market premiums in Hamburg were little changed, underpinned by good export loadings.
Standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale at an unchanged 4.0 euros over the Paris March contract. Buyers were seeking 3.5 euros over. "The lineup of ships loading wheat in German ports remains brisk with one ship taking on 30,000 tonnes for Algeria in Hamburg this week and another set to take on 25,000 tonnes for Algeria in Lubeck," one German trader said.
"Following large loadings for South Africa this month, another ship is to sail for Guinea with about 35,000 tonnes and another is leaving for Mozambique with around 10,000 tonnes." German traders continued to play down the threat of double-digit minus Celsius lows to crops due to protective snow cover. In other export news, Morocco awarded 359,998 tonnes of US soft wheat imports in a tender held as part of an annual preferential-tariff quota.
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