Euronext wheat futures rose on Wednesday, supported by a rebound in Chicago and a sharp drop in the euro, while cash prices in France and Germany were underpinned by slow farmer selling. December milling wheat, the most active position on Paris-based Euronext, settled 1.25 euros, or 0.7 percent, higher at 178.25 euros ($206.36) a tonne.
Chicago wheat recouped some of its losses from the three previous sessions, helped by an in easing in investor concerns about a US-China trade dispute. A slide in the euro against a broadly stronger dollar also lent support to Euronext, making western European grain cheaper overseas. Wheat markets have been under pressure from an advancing US harvest, which has shifted attention away from dry weather problems in northern Europe and the Black Sea region.
Cash premiums at French ports were also marked up by over 1 euro, amplifying the market rise given the higher futures. A continued lack of farmer selling amid pre-harvest caution in France was supporting the physical market, although brokers were surprised at the extent of the price rise on Wednesday. In Germany, cash market premiums in Hamburg were slightly firmer as recent dryness stressing crops in north and east Germany reduced farmer selling.
New crop standard bread wheat with 12 percent protein for September delivery in Hamburg was offered for sale at 3 to 3.50 euros over Paris December after trading at 3 euros over on Tuesday. Dryness this summer means damage to wheat in north and east Germany is expected although wheat in south and central Germany is in decent shape. "Dryness damage looks like being concentrated in the north and north east where premiums are supported by lack of farmer selling," one German trader said.
"Wheat with 12 percent protein was offered for sale in Berlin today at 7 euros over Paris for September onwards delivery but mills were resisting this especially high level," the trader said. "The uncertainty means farmers are unwilling to make advanced sales of the new crop as they do not know for sure how many tonnes they will harvest and what the quality will be."