EU wheat follows US markets up, firm Russian prices support

HAMBURG: European wheat futures rose on Tuesday in step with rising US markets as chart support and doubts about Russia's export surplus underpinned prices.

Benchmark December milling wheat on the Paris-based Euronext exchange was up 1.25 euros, or 0.6 percent, at 199.25 euros a tonne at 1542 GMT.

The holding of a technical level at about 198 euros was encouraging the firm trend, dealers said.

After European and US futures slid last week to their lowest levels since July, renewed speculation about possible Russian export restrictions and the risk of more weather damage to Australian crops have shifted attention back towards a tightening global supply outlook.

An international tender being held by Egypt on Tuesday also showed offers of Black Sea wheat, mostly Russian, which were about $3 to $5 higher than in Egypt's previous tender last week, traders said.

On the French market, traders noted firm premiums at the northern export port of Rouen, supported by attractive handling rates offered by port silos, while premiums at La Pallice on the west coast were being depressed by stronger inland demand.

In Germany, cash premiums in Hamburg were generally flat, with sentiment depressed by the poor export outlook after a drought and heatwave damaged the country's harvest this summer.

Standard bread wheat with 12 percent protein for September delivery in Hamburg was offered for sale unchanged at 4 euros over Paris December.

"Export demand for German wheat remains weak and is likely to remain so after our poor crop this summer," one German trader said. "France and Romania look like having the best EU export performance in coming weeks and months after they had decent crops."