European wheat futures edge higher

European wheat futures edged higher on Friday as the market waited for rain-delayed field work to advance to get a clearer picture of weather-related damage to western Europe's harvest. Front-month September milling wheat on the Paris-based Euronext exchange settled up 0.25 euro at 166.50 euros a tonne, while the December contract settled 0.50 euro higher at 170.00 euros.
Prices were almost unchanged over the week, reflecting a consolidation trend as the market had factored in a very poor French crop against big harvests in the United States and Black Sea region. France's farm ministry slashed its yield estimate for this year's soft wheat crop to a 30-year low, bringing its production outlook into line with current trade estimates.
But there was still uncertainty over final harvest results in France due to repeated rain in the north, and increasing concern about rain hold-ups in Germany. "Matif (Euronext) is following its own path at the moment compared to Chicago," one futures dealer said. "People are waiting for the rest of the harvest in northern France and in Germany. There is more interest in the German crop than I've seen in recent years."
Worry about quality losses from rain in Germany was keeping premiums for high quality grades well above standard wheat. "Showers fell again on Friday and are forecast to continue up to Tuesday so there is no end to the worry that the rain is delaying the harvest and may be causing late quality loss," one German trader said. "Nationally it is immensely difficult to make an assessment of harvest progress and likely quality." German 13 percent protein content A grade wheat was offered for sale at around 6.5 euros over Paris for September delivery in Hamburg.
Standard wheat with 12 percent protein content for September delivery was offered for sale at 0.5 euro over the Paris December contract against 1.0 euro over Paris on Wednesday. Buyers were seeking level Paris. The slight fall in standard wheat premiums reflected the reluctance of some buyers to accept recent high levels, traders said.