MADRID: European benchmark wheat prices rose on Monday to catch up with strong gains posted late on Friday in Chicago after the release of bullish US plantings and stocks data.
"We are adjusting to the close on US markets but that's it. There is no rush from (wheat) buyers," a Euronext trader said, adding that while the spread with US prices had narrowed it was still at around $30 a tonne.
By 1210 GMT front-month May milling wheat futures were 0.75 euro, or 0.35 percent, higher at 213.50 euros ($284.33) a tonne on the Euronext exchange in Paris.
Traders located resistance at 215 euros and noted prices were still down on a week ago.
Showers were forecast in France from Tuesday but mainly in the eastern part of the country, which could ease but not erase rising drought concerns.
European rapeseed prices on the other hand were bullish and drawing support from poor soybean crop forecasts in South America, lower-than-expected planting estimates by the USDA on Friday, rising concerns about frost damage on European crops and strong demand.
"Everyone is running after the market and there is no one selling seeds," a trader said.
The front-month May rapeseed contract was 0.7 percent higher at 494.25 euros a tonne. It hit a contract high of 496.75 euros on Friday.
SPAIN
Spanish wheat prices were broadly firm but dealers noted that market attention was shifting to maize, which is now trading at an unusual discount.
Few wheat shipments are expected in the coming weeks to import-dependent Spain now that special EU permits have expired for Ukrainian and Russian wheat.
"Prices have been zig-zagging considerably, so pinning quotes down to within a euro has become well-nigh impossible and now more than ever quotes are better defined as being for guidance," a report from the Mercolleida agricultural exchange said.
Prompt imported feed wheat was quoted in key grains port Tarragona at 228 euros/tonne , ex-store, unchanged from last Wednesday. That compared to 226-229 euros/tonne for prompt maize.
New crop wheat for September delivery was up 1 euro to 210 euros/tonne.
GERMANY
Germany's market remained firm due to the continued impact of Friday's USDA report plus continued high feed wheat prices and increasing concern about frost and drought damage to crops.
New-crop milling wheat for September delivery in Hamburg was offered for sale up three euros at 214 euros a tonne with buyers around 212 euros. Old crop for April delivery was up three euros at 226 euros with buyers around 224 euros.
Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered for sale way above milling wheat, up two euros at 234 euros a tonne with buyers at around 232 euros.
"The impact of the USDA reports on Friday continue to provide the market with bullish sentiment while the continued high demand from animal feed makers mean milling wheat is being sold as feed because of high feed wheat prices," one German trader said. "There is also continued worry that frost damage to German crops is more serious that feared and that harvest forecasts will be cut."
Grain plants in Germany are also increasingly in need of rain.
"The rain which was forecast for the weekend in north Germany generally did not fall in the expected volumes which was a great disappointment," another trader said. "Grains need more water and unless we receive good volumes in the next couple of weeks dryness could become a serious concern." Showers are forecast in much of north Germany on Tuesday and Wednesday followed by generally dryer weather on Thursday and Friday.