HAMBURG: European milling wheat futures rose to a six-week high on Wednesday, boosted by a jump in Chicago futures and a break in Paris above a psychologically important chart level.
But gains were capped by a rebound by the euro, whose export-friendly fall had supported prices on Tuesday, traders said.
Benchmark May milling wheat on the Paris futures market closed up 4.75 euros or 1.9 percent at 243.25 euros a tonne, after touching 243.50 euros, the highest level since Feb. 5.
"We are mainly following US markets," one trader said.
US wheat futures climbed to a one-month high on Wednesday, rising for eight out of 10 sessions as strong demand for US supplies from importers and livestock producers underpinned the market.
Traders stressed the Paris front-month contract had broken a resistance level, which supported the rise.
"This morning we smashed the 240 euros resistance at the open but I doubt we will break the next one at 241.75 euros," one trader said.
The euro rebounded on Wednesday from a four-month low against the dollar in the previous session as worries about Cyprus eased, with some investors convinced the country can hammer out a deal to avert default.
Algeria's state grains agency OAIC has bought 350,000 tonnes of optional-origin milling wheat for June shipment in a tender, European traders said.
Cash prices for wheat delivered in the French export port of Rouen rose strongly due to a lack of availability, traders said.
<Center><b><i>Copyright AFP (Agence France-Presse), 2013</b></i></center>
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