Euronext wheat prices edged higher on Thursday, steadying after an earlier one week low with support from higher US futures, as traders weighed weather updates for northern hemisphere crop belts.
September milling wheat on Paris-based Euronext settled up 0.75 euros, or 0.4%, at 187.25 euros ($207.47) a tonne, after touching a one-week low of 185.75 euros earlier in the session.
Chicago wheat rose as forecasts pointed to a warm, dry spell in the US Plains wheat belt next week following recent rain.
In Europe, traders continued to assess potential benefit for crops from showers along with persisting dryness in some countries that has led forecasters to reduce harvest estimates.
"Global prices have remained range-bound this week, caught between favourable sowing and crop development weather in the US and ongoing concerns over dryness across much of the northern EU and southern Russian growing areas," ADM Agriculture said.
The European Commission sharply lowered its forecast for common wheat production in the European Union's 27 member countries in 2020/21, to 121.5 million tonnes from 125.8 million estimated a month ago.
A hot, dry spell was continuing in France, although some rain was forecast for next week. In Germany, attention remained on dry weather in the north and east, key exporting zones.
"The weather has turned dry again after recent rain," one German trader said. "There is no reason to shout panic, there are expectations of a below-average harvest in some parts of Germany but we are not talking about a disaster."
Export demand for the upcoming season remained light. New crop was being offered from the Baltic States at lower prices than Germany, with a good harvest expected in areas including Lithuania.
Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale little changed at around 1 euro under the Paris December contract.