European wheat edged higher on Tuesday after hitting a five-month low in late trade in the previous session on ample global supplies. March milling wheat, the most active position on Paris-based Euronext, unofficially closed 0.3 percent higher at 162.75 euros a tonne. The contract had fallen to 161.75 euros on Monday, a price unseen since July 5 and not far from its contract low of 161.00 euros a tonne hit that same day.
The volume was still dominated by technical adjustments ahead of the expiry of front-month December. Traders noted that the open interest on December, at nearly 18,000 lots, was still relatively high just four days before the contract's expiry, which could mean volatile trade in the coming days. Canada's estimate of an all-wheat crop at 31.7 million tonnes, up 15 percent from last year, was not far from expectations, traders said.
Statscan's estimate came just a day after Australia raised its official forecast for 2016/17 wheat production to a record 32.64 million tonnes. The market is also awaiting the US government's monthly supply and demand report due to be released on Friday which should give a better indication on harvests in the southern hemisphere. Rapeseed futures hit new contract highs on February and May, the two last deliveries for the 2017 crop, following a broad rally on the international oilseed complex.