European wheat futures were mixed on Wednesday as the market assessed the impact of a poor French harvest against the big crops in other exporting countries. Traders were waiting for rain-delayed harvesting to make headway in the northern French wheat belts to have a clearer overall picture of volume and quality in this year's harvest, which has been damaged by heavy rain, a lack of sunshine and widespread crop disease. A rise in US wheat futures also supported European prices.
Front-month September milling wheat on the Paris-based Euronext exchange was unchanged at 168.50 euros a tonne at 1527 GMT, while the December contract was up 1.0 euro at 170.75 euros. "Matif (Euronext) is not really moving much, even when Chicago is moving up or down," one futures dealer said. "The focus is on what we're going have at the end of the French harvest, people want to have a clearer picture."
Estimates of the French soft wheat crop were converging at between 28 million to 30 million tonnes, the lowest in around 28 years. Harvesting has been held up this week by showers in northern France and work may not resume until the weekend. German cash market premiums in Hamburg were firm on concern that persistent rain could cause late damage to Germany's crop.
Standard wheat with 12 percent protein content for September delivery was offered for sale at 0.5 euro over the Paris December contract against level Paris on Tuesday. Buyers were seeking 0.5 euro under Paris. Rain in recent days and weeks is delaying Germany's wheat harvest and creating uncertainty about the crop's outcome, the Association of German Farmers said.
Concern about late season quality loss was keeping premiums for high quality grades well above standard wheat. German 13 percent protein content A grade wheat was offered for sale at around 5.5 euros over Paris for September delivery in Hamburg. "Worry is increasing that rain is causing constant delays in harvesting and there is also concern about last minute quality damage in some areas although the overall picture is unclear," one German trader said. "In southern areas such as Franken in Bavaria work should have been finishing by now but large areas of wheat there remain unharvested." "There is great uncertainty in the market. Sunshine is urgently needed to get some harvest progress but rain fell again on Wednesday and is forecast until the weekend."