PARIS: Euronext wheat rose for the second day in a row on Wednesday to a one-month high as latest harvest estimates fueled uncertainty about supply prospects in Europe and the Black Sea region.
Front-month September wheat on Paris-based Euronext settled 2.25 euros, or 1.2%, higher at 187.00 euros a tonne, after rising to its highest since June 5 at 187.25 euros.
A first official forecast of France's 2020 soft wheat crop on Tuesday supported prices, with the farm ministry surprising traders with a low area estimate that underpinned its projection of a 21% drop in production.
Farming agency FranceAgriMer on Wednesday then forecast that French soft wheat exports outside the European Union would drop by over 40% in 2020/21 on the back of the smaller harvest, in contrast to a record volume in the 2018/19 season that ended on June 30.
"There is a lot of uncertainty," Benoit Pietrement, president of FranceAgriMer's crop committee, said regarding the French harvest.
"Locally, we are getting nice surprises and very bad ones, so it's difficult to calculate averages."
In Germany, traders said rain in the country this week would be beneficial for wheat.
"I think the consensus in the market that rain this week and forecast up to the weekend will be positive for wheat development and there is no current worry because of rain," one German trader said.
But with wheat harvesting expected to start in late July and early August, dry sunny weather will be needed in Germany after around July 20, he said.
Standard bread wheat with 12% protein for September delivery in Hamburg was offered for sale little changed at around 1.0 euro under the Paris December contract.
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