PARIS: Paris wheat futures edged higher on Friday as traders assessed the potential impact of a heatwave in western Europe while awaiting US planting estimates and the outcome of a large Saudi import tender.
Front month September milling wheat on Paris-based Euronext, was up 1.00 euro, or 0.6 percent, by 1538 GMT at 183.25 euros a tonne.
Volumes were light ahead of the US Department of Agriculture's (USDA) acreage report later in the day that will give an indication of the impact of torrential rain in the US Midwest.
Euronext spot prices remained below Tuesday's three-week high of 185.25 euros that came as traders started to worry about the onset of an unusually early summer heatwave in Europe.
France saw its highest temperature on record on Friday at 45.8 degrees Celsius (114.44°F) in the south.
However, some traders said the hot spell is likely to have come too late to cause significant damage to maturing crops and will not last long enough either.
"There is concern about wheat but it's not huge given the heatwave is just this week," a French grain broker said.
Temperatures in France are forecast to ease after this weekend.
The hot spell could let French wheat harvesting get going in the coming days after accelerating final crop development, traders said.
The hot weather has also helped France's winter barley harvest get well under way this week.
At European Union level, the European Commision reduced its forecast of 2019 EU soft wheat production by 1.5 million tonnes to 142.3 million, but this remained well above last year's drought-affected crop of 128.8 million.
In Germany, standard bread wheat with 12pc protein for September onwards delivery in Hamburg was offered for sale unchanged at 5 euros under Paris December. Buyers were seeking at least 6 euros under.
Traders also saw relatively limited damage from this week's heatwave.
"If temperatures fall as forecast early next week we should get away with a black eye. I think a larger crop coupled with heavy export competition is expected."
Results were awaited on Monday of a 715,000 tonnes tender from Saudi Arabia, one of Germany's main wheat buyers.
Germany is not seen as likely to gain a large share of the Saudi tender.
"Lithuania and the other Baltic States have only small domestic markets and grow wheat mainly for export," another trader said.
"With good harvests looming they are likely to want to get early sales in their books to start high volume exports moving out."
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