PARIS: European wheat futures in Paris rose sharply on Tuesday to hit their highest in more than three months, pushed up by rising US markets.
Benchmark September milling wheat
on Euronext was up 1.3 percent or 2.75 euros at 184.50 euros ($206.10) a tonne by 1618 GMT, having earlier in the day hit 185.25 euros, the highest since Feb. 13 and bringing the weekly gain to 5pc.
US wheat in Chicago was up almost 3pc in early trade, largely on concerns that rain in US grain belts could damage wheat and delay corn plantings.
Paris wheat had shot up in early trade, creating a chart gap at the open for a second straight session.
"The weather market (in the United States) continues to take over the fundamentals, including the expected good harvest in the Black Sea region and its price differential on the world market," a Euronext trader said.
The US Department of Agriculture's report on US crop conditions later on Tuesday will be a decisive factor, the trader added.
In Germany, cash premiums in Hamburg slipped in slack demand as buyers resisted higher prices in view of the improving EU harvest outlook.
Standard bread wheat with 12 percent protein for September onwards delivery in Hamburg was offered for sale at 2 euros under Paris December, against 1.5 euros under on Monday. Buyers were seeking at least 3 euros under.
In Poland, wheat prices fell in the last week on increased farmer selling, improving crop conditions, good industry supply cover and slow exports.
Milling wheat with 12.5pc protein for May/June delivery dropped about 20 zlotys on the week to 760 to 770 zlotys (176.9-179.3 euros) a tonne delivered to mills.
Exporter purchase offers for the new crop were between 710 to 715 zlotys a tonne for 12.5pc protein wheat for August/September delivery, little changed on the week.
"Export markets are almost dead," a Polish trader said.
"Only small ships are (being loaded with) ... wheat and corn for the inter EU-market. No big ships are reported in port lineups."
New crop wheat trading was also said to be thin, with recent rain improving the outlook for Poland's summer 2019, harvest.
"The condition of new crop grains improved further due to a mix of rain and warm weather," the trader said.
"New crop sales from farmers are low so some industry and trade buyers have been unable to get supplies booked."
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