EU wheat steady with Chicago as US crop risks hang over market

PARIS: Euronext wheat futures edged higher on Thursday in step with Chicago prices as worries about the impact of torrential rain on US grain belts continued to drive the market.

Front-month September milling wheat on the Paris-based Euronext exchange unofficially closed 0.25 euro, or 0.1%, higher at 175.25 euros ($195.86) a tonne, steadying after a drop in the previous session.

However, the contract pared earlier gains as a rebound in Chicago wheat faltered, with the Paris benchmark remaining below a near seven-week high of 178.25 euros struck on Tuesday.

The US grain market has surged in the past week amid growing concern that torrential rain will prevent some corn planting and damage some maturing winter wheat crops.

Parts of the US Midwest and Plains are forecast to see more showers in the week ahead, increasing risks for crops.

The European market has rallied less strongly than Chicago since last week, with sentiment tempered by favourable growing conditions in Europe and the Black Sea region.

The Russian government on Thursday projected a 2019 wheat harvest of 75 million tonnes, below the expectations of other forecasters.

But traders said the estimate had limited impact on the market as it was seen as a conservative figure.

European traders were also waiting to see how the US market would react to details of a new government aid plan designed to offer further help to farmers affected by a US-Chinese trade dispute.