HAMBURG: European wheat futures in Paris rebounded on Tuesday from contract lows hit on Monday, supported by a strong rise in US wheat futures.
U.S wheat in Chicago rose on Tuesday as delays to US corn planting and renewed hopes surrounding US-Chinese trade negotiations encouraged grain prices to recover.
A hot spell in top wheat exporter Russia was also putting attention back on weather risks, tempering recent expectations of bumper harvests in the northern hemisphere.
Benchmark September milling wheat
on the Paris-based Euronext exchange, was up 3.0 euros, or 1.7pc, at 171.75 euros ($192.48) a tonne at 1537 GMT.
On Monday, it had dropped to a life-of-contract low of 167.00 euros, its lowest level in just over a year on a continuation chart.
"The market is rebounding after a drop that was somewhat overdone," a European futures dealer said. "The world supply outlook is comfortable on paper but is not yet guaranteed."
In France, the farm ministry maintained its estimate of the 2019, soft wheat planted area at 5.0 million hectares, up 2.9pc from last year, saying maize sowings would also be expanded as farmers cut back on rapeseed and sugar beet.
In exports, traders were awaiting the results of an Algerian wheat import tender held on Tuesday.
In Germany, cash premiums in Hamburg were hardly changed as dealers assessed the beneficial impact of recent rain on German wheat crops.
Standard bread wheat with 12 percent protein for September onwards delivery in Hamburg was offered for sale flat at 0.25 euro under Paris December.
Germany's 2019, wheat harvest will increase 19.8pc on the year to 24.28 million tonnes as conditions point to a recovery after drought caused massive harvest damage last year, the country's association of farm cooperatives (DRV) said on Tuesday.
Crops have benefited from rain in much of Germany in recent weeks and cooler weather which stopped rainfall evaporation, the DRV said.
"It looks like the rain has saved the harvest from dryness damage from the very dry start to the spring although it came only just in time," one German trader said.
"With normal weather up to the start of harvesting in August, Germany could achieve a normal harvest this year.
"A concern now is that harvest prospects in Russia and the rest of the Black Sea region are also good, and falling Russian prices mean greater competition for west Europe in export markets.
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