PARIS: Euronext wheat edged higher on Wednesday, steadying after a three-day fall in step with Chicago prices as traders assessed mixed harvest prospects across Europe.
Front-month September milling wheat on the Paris-based Euronext exchange was up 0.50 euro, or 0.3%, at 185.00 euros ($209.92) a tonne at 1523 GMT. The market was also awaiting direction from US government crop estimates on Thursday.
Traders were weighing the impact of a dry spring against beneficial rain this month across Europe and the Black Sea region. Contrasting forecasts for the upcoming harvest in Russia, were contributing to the hesitant trend.
"Russian crop estimates are in such a wide range, who to believe?," one futures dealer said.
In western Europe, more showers are expected in the rest of the week although concerns remained about dry northern parts of France and Germany. In France, the farm ministry on Tuesday forecast this year's winter barley crop would fall nearly 12%. It will give a first wheat production estimate next month.
In Germany, more welcome rain fell in dry eastern regions on Wednesday and more is forecast up to Saturday. "Just a bit more (rain) could be enough to get the crops in the north and east in a good enough state for the harvest," one German trader said.
Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale at around 1.0 euro under the Paris December contract against 1.5 euro under on Tuesday, as sellers resisted the day-earlier fall in Paris.
A firm euro continued to dampen export sentiment for the upcoming season. Egypt bought 120,000 tonnes of Russian wheat for July shipment in a tender on Wednesday in which no French supplies were offered. For the current season that ends this month, farm office FranceAgriMer raised again its estimate of French soft wheat exports outside the European Union to a new record.