Western European wheat markets rose on Thursday to come off a four-month low, lifted by renewed buying interest and support levels on price charts. November milling wheat on Paris-based Euronext settled 1.25 euros or 0.7 percent up at 186.75 euros a tonne. In the previous session it touched a low since mid-February at 185.00 euros but found strong technical support at that level, dealers said.
Chicago wheat also rose to pull away from a four-month low as some operators covered short positions in the run-up to a US government report on grain stocks and plantings due on Monday. "The 180-182 euros zone and the 185 euros level are seen as majors buying zones by traders and analysts," Arnaud Saulais of Starsupply Commodity Brokers said in a note.
"Traders have currently short positions on the US and European wheat market and may be tempted to buy back a few of them as US wheat stock report is forecasted by analysts at the lowest level for six years." However, European prices remained capped by expectations of a six-year high for European Union wheat production in this summer's harvest.
German cash wheat premiums were also slightly firmer on a return of moderate purchase interest, with the focus still on the positive weather for Germany's harvest. Standard new crop wheat for delivery in Hamburg from September was offered for sale at a premium of 5 euros over the Paris November contract against 4.5 euros over on Wednesday. Buyers were offering 4 euros over Paris after no purchase offers had been reported on Wednesday.
"There was a return of moderate purchase interest today after several days in which hardly any buying offers were seen in the Hamburg market," one German trader said. "But overall trade remains thin as a large wheat crop is expected this summer and buyers are expecting weaker prices in coming months."
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