Paris wheat higher as dry weather returns to parts of Europe

• September milling wheat on Paris-based Euronext settled up 1.50 euros, or 0.8%, at 186.50 euros ($201.77) a tonne.
• Weather updates predicted a dry week ahead over swathes of Europe including northern France, rekindling concerns about crop stress after a very dry start to spring.
• The ratings fall created uncertainty about whether stormy showers in France in early May had benefited crops.

PARIS: Euronext wheat rose on Friday as it continued to recover from losses earlier in the week, supported by forecasts for another spell of dry weather in parts of Europe.

September milling wheat on Paris-based Euronext settled up 1.50 euros, or 0.8%, at 186.50 euros ($201.77) a tonne.

The contract moved away from a 10-day low of 183 euros touched on Thursday but still showed a near 1% drop over the week.

Weather updates predicted a dry week ahead over swathes of Europe including northern France, rekindling concerns about crop stress after a very dry start to spring.

"The return of dry and warm weather in much of Europe could fuel fresh worries among traders and push wheat prices higher," a futures dealer said.

The condition of French soft wheat declined again in the week to May 11, with 55% of crops rated good or excellent against 57% a week earlier, farm office FranceAgriMer said on Friday.

The ratings fall created uncertainty about whether stormy showers in France in early May had benefited crops.

In Germany, the country's association of farm cooperatives reduced its forecast for this year's all-wheat crop to 22.38 million tonnes from 22.73 million estimated last month, partly due to dry weather.

However, showers expected over the weekend were easing concern about crop stress.

"To me the cut in the harvest forecast was pretty mild and it looks like the rain in the past couple of weeks was enough to prevent serious dryness damage," one German trader said.

"More rain is still needed but forecasts are looking wet and I think we are still on course for a decent crop."

Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale little changed at around 1.5 euro under the Paris December contract.

Buyers were offering around 2 euros under Paris.