Wheat prices up as less rain forecast
Paris futures also drew support from firm U.S. futures which rebounded from a sharp fall on Tuesday.
European Benchmark wheat, Paris's November contract was up 1.75 euros or 0.7 percent at 242.75 euros a tonne by 1138 GMT. Paris had fallen over 1 percent on Tuesday following drops in U.S. prices and earlier forecasts of widespread rain in France on Thursday.
"We're in a real weather market," one trader said.
"We were waiting for rain and it's now looking less substantial than expected."
Weather forecasters are now expecting only light showers and localised thunderstorms for France on Thursday and Friday which would bring little relief to grain crops stressed by a prolonged dry and warm spell. Substantial rain had earlier been forecast.
"The rainfall will continue to be erratic and not enough to ease the drought," private forecaster Meteo Consult said, adding that May was the third straight month showing a major rain shortfall in most of France.
Nearly half of France's local government regions have imposed some restrictions on water use as of Tuesday, with a growing number of areas subject to irrigation curbs, France's environment ministry said on Wednesday.
French weather worries were also exacerbated by sub-zero overnight temperatures in parts of the country, which raised the risk of possible late season frost damage, traders added.
In the EU's second largest wheat producer Germany, prices were firm with market attention focused on dry weather threatening crops.
Weather remains dry in drought-hit Germany and some weather forecasters are scaling-back their previous expectations of heavy rain on Friday.
Standard new crop bread-quality wheat for September and later delivery in Hamburg was offered for sale up one euro at 248 euros a tonne with buyers at 246 euros.
"The weather looks like remaining dry in France and Germany," one German trader said.
"People had been hoping for heavy rain at the end of this week but the forecasts are not so encouraging today."
Germany is forecast to remain almost completely dry on Wednesday. Light showers in west-Germany are expected on Thursday.
But several forecasters now say they expect showers and thunderstorms on Friday instead of the constant rain previously forecast. Saturday and Sunday are forecast to be mainly dry and hot again.
Germany's giant farming cooperatives association forecasts the country's 2011 wheat harvest will fall 7.2 percent on the year to 22.31 million tonnes from 24.0 million tonnes last year after very dry weather in recent weeks.
Crops in key north German wheat export regions have been especially hit by drought.
Copyright Reuters, 2011