European Union wheat futures rose on Monday to their highest in nearly seven weeks as a bounce in US prices encouraged buyers to take the market above a recent consolidation zone. The May milling wheat, the benchmark on Euronext's established No 2 wheat contract, settled up 2.50 euros or 1.3 percent at 192.75 euros a tonne, after touching its highest since January 28 at 193.00 euros in closing trade.
A late wave of buying took the contract through a chart resistance zone between 190 and 192 euros that has capped recent gains in Paris.
Euronext drew impetus from a rebound in US wheat, linked to worries about dry weather as well as an easing in the dollar after 12-year highs.
"Chicago is gaining ground with the weather concerns. Temperatures are getting warmer there and the rain forecast is a bit light," one futures dealer said.
The turnaround in Chicago helped Paris prices come off a morning fall when the European market had adjusted to a sharp closing fall in Chicago on Friday as well as chart resistance.
The European market remained underpinned by its competitive position in export markets, despite a sharp rebound in the euro on Monday.
Official data showed the European Union last week awarded export licences for 1.59 million tonnes of soft wheat, the second-largest weekly volume ever.
Positive export sentiment continued to support German cash premiums and old-crop cash wheat premiums were marked up to compensate for the earlier fall in Paris futures.
Standard wheat with 12 percent protein content for delivery in Hamburg in April was offered for sale at a premium of 4.5 euros over the Paris May contract against 4 euros on Friday. Buyers were offering 3.5 euros over.
But in Poland, another wheat exporter, wheat prices fell in the past week due to farmer selling, weaker export demand and good supply cover held by mills, traders said.
"Exporters also seem to be well covered for their March and April shipments and they do not seek to buy at any price."
But Polish ports remained busy handling recent export sales.
Two ships with 60,000 and 20,000 tonnes milling wheat sailed for Egypt in the past few days and several more are scheduled in the coming days to load around 200,000 tonnes, traders said.
Polish export prices for milling wheat with 12.5 percent protein content fell by 20 zlotys (4.8 euros) on the week, with purchase offers on Monday of 770 zlotys (186.2 euros) a tonne and sales offers of 780 zlotys (188.6 euros) a tonne for April delivery.
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