European wheat prices rose on Monday, shrugging off a slump in Chicago wheat futures, supported by the euro's fall to a 10 month-low against the dollar boosting euro-denominated grains' competitiveness. December milling wheat on Paris-based Euronext, was 0.25 percent higher by 1714 GMT at 161.75 euros a tonne. Options on the contract close on Tuesday.
CME Group's December EU wheat contract rose 2.1 percent to 182.00 euros a tonne. The premium between CME and Euronext on the December contract continued to grow, confirming stronger activity on the internal market than on exports. CME offers inland delivery points as opposed to port-based Euronext. Wheat futures on the Chicago Board of Trade were off more than 2 percent, pressured by ample global supplies, notably the possibility of another big Russian wheat crop next year.
Russian farmers have sown the largest grain area of the last seven years and could add more in the coming weeks, analysts said last week. Traders were also waiting for the results of Algeria's tender to buy wheat for January delivery. German cash market premiums in Hamburg were firm on hopes that the weaker euro will generate new export sales.
Standard wheat with 12 percent protein content for January delivery in Hamburg was offered for sale up 1 euro at 3 euros over the Paris March contract. Buyers were seeking 2.5 euros over. "The weaker euro is a very welcome development at the present constellation in the export markets with Russian export prices rising," one German trader said.
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