Euronext wheat rose sharply on Friday to reach its highest in over two months, spurred by a rally on the US market where the threat of crop damage from a snowstorm and optimism about a breakthrough in trade talks with China pushed prices higher. The gains reversed losses from a day earlier when corn and wheat markets slid following higher than expected supply forecasts from the US Department of Agriculture (USDA).

Benchmark December milling wheat on Paris-based Euronext settled up 3.00 euros, or 1.7%, at 180.00 euros ($198.65) a tonne. In late trading, the contract touched its highest since July 31 at 180.25 euros. Traders turned their attention away from the USDA's closely watched US corn yield forecast, viewed sceptically by many in the market due to weather setbacks this year.

The market is now assessing the risk of damage to US crops from a wintry storm passing over northerly grain belts. "It's going to be corn that will support wheat this season," a French trader said. "If you exclude China, we're looking at much tighter global stocks in corn than in wheat." In export news, Tunisia was set to book 50,000 tonnes of optional-origin milling wheat after accepting the cheapest offers in a tender on Friday, traders said.

A rebound in the euro to a three-week high against the dollar raised a question mark over the export competitiveness of western European origins. In France, farmers had sown 4% of the expected soft wheat for next year's harvest by Oct. 7, up from 1% a week earlier but down from 15% a year ago, farm office FranceAgriMer said on Friday.