Wheat prices in western European markets rose on Tuesday buoyed by a bounce on US grains markets and weather concerns in major wheat producers such as France and Germany, traders said. By 1206 GMT, benchmark November on Euronext milling wheat futures were 2.3 percent higher at 200.00 euros a tonne.
Prices remained within the range between 183.50 and 202 euros a tonne which prevailed for nearly a month. "We are really in the wake of US markets, which are concerned about weather conditions," a trader said.
Wheat futures were 2.8 percent higher in Chicago, tracking gains in corn following a US government report which showed more-than-expected decline in crop ratings as a result of hot weather.
The decline in corn ratings was the biggest weekly drop in three years. "We will have a hard time going above 200 euros without a new fundamental element," another trader said. Harvests were still halted in most of France due to heavy rainfall. Traders also noted particularly low temperatures for the season. These weather conditions were expected to last until the end of the week.
Some operators were already worrying about the impact on wheat quality but others said it was too early to speak about irreversible damage.
Rainy weather since mid-July in most of France did not hurt yields nor protein levels but already impacted wheat plants' specific weight in some parts and could hurt Hagberg falling numbers if rains were to last another two weeks, Philippe Gate, agronomist at technical institue Arvalis, said.
GERMANY
In the EU's second largest wheat producer Germany, prices were firmed by the rise in Paris and higher overnight trend in Chicago wheat coupled with background support from worry about the German harvest.
Standard new crop bread-quality wheat for September and later delivery in Hamburg was offered for sale up three euros at 205 euros a tonne with buyers at around 203 euros.
"It seems to be a technical market today with spillover support coming from corn to wheat caused by the US crop report on Monday," one trader said.
"Background support is also coming from the continued worry about the state of the upcoming German harvest," he added. Germany's wheat crop is likely to fall 4 percent on the year with late rain not enough to enable plants to recover fully from the spring drought, German farm co-operatives said on Monday.
SPAIN
Spanish inland wheat has rebounded in step with port prices after falling for several weeks due to pressure from the domestic harvest.
Feed wheat was quoted up 6 euros from a week ago at 196 euros/tonne, ex-store , in the northern Castilla-Leon region, which grows about 40 percent of Spain's wheat and barley.
Farmers expect to finish field work by the end of the month in Castilla-Leon, the last major cereal-producing region where wheat and barley have yet to be harvested.
"There's been a bit of hail which may affect previsions, but the harvest is about average," said a spokeswoman for the Asaja union in Castilla-Leon.
Spain is home to Europe's biggest pig-feed industry and needs to import at least 7 million tonnes of cereal a year to meet demand, even if farmers reap a bumper crop.
ITALY
Wheat prices in Italy, another major grain buyer in Europe were little changed on the week at about 225-230 euros a tonne for bread quality grain ahead of a key weekly session at Milan's cereals exchange.