Euronext wheat futures edged higher on Monday, in step with a slight bounce in Chicago, though poor export prospects continued to keep a lid on the western European market. March milling wheat, the most active contract on Paris-based Euronext, settled 0.50 euros, or 0.3 percent, higher at 155.75 euros ($190.67) a tonne.
It remained shy of a 156.50-157.00 euros chart range that was acting as a resistance zone. A rise for Chicago wheat, where a large short position held by investors was making it prone to covering moves, supported Paris prices.
Traders were assessing heavy rain that has left fields waterlogged in France and Germany. "The market is monitoring the weather without real concern for now. It's raining a lot and some fields are waterlogged, but the crops are at a growth stage where they can cope. The weather is also forecast to improve at the end of the week," one futures dealer said.
In Germany, the melting of snow that had fallen over the weekend was adding to concern about drenched fields. A firm euro, which traded above $1.22 and within reach of last week's three-year high against the dollar, also underscored a tough export outlook for west European wheat.
"The euro around three-year highs against the dollar does not bode well for new export sales from Germany," one German trader said. "I think we will see the recent picture continuing, with inland prices in Germany higher than in ports because of slack export demand."
Standard bread wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at about 5 euros over Paris March.
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