European wheat extended gains recorded in the previous session on Wednesday, supported by bargain buying by industry players as prices have fallen near production costs, traders said. However, activity remained low with small volumes traded. December milling wheat on Paris-based Euronext, was 0.6 percent higher by 1613 GMT to 163.00 euros a tonne for less than 13,000 lots (650,000 tonnes).
"(Coverage) needs are there but the volumes exchanged remain thin and the range unchanged," a Euronext trader said. Prices have stayed between 155.00 and 165.00 euros since mid-August. Looking to the next season, European farmers are expected to sow more rapeseed for the 2018 harvest, but uncertainty remains about whether planting intentions will be carried out, analysts said on Wednesday.
For wheat, France's area may decline slightly after peaking at an 80-year high of just over 5 million hectares in the past couple of seasons, although a significant swing is not expected. In Chicago wheat futures edged higher but gains linked to worries about dry conditions in Australia and excessive rain in Argentina were capped by plentiful global supplies and a large Russian harvest.
In Germany cash premiums in Hamburg were flat with the market lacking impetus as export demand remains weak. Standard bread wheat with 12 percent protein content was offered for sale unchanged at 2 euros over the Paris December contract for October delivery in Hamburg. German export sales have been hindered after repeated rain in August and September damaged the quality of this summer's harvest, while the stronger euro has also restrained new business.