EU wheat prices rise on crop concerns, weak euro
European wheat prices rose on Thursday with crop prospects in Germany, Britain and several other countries dented by a prolonged dry spell, while the weakness of the euro boosted the outlook for exports.
December milling wheat, the most active contract on Paris-based Euronext, ended up 1.50 euros, or 0.8pc at 189.25 euros a tonne after peaking at 189.50 euros, the highest since July 6 and close to its resistance of 190.00 euros.
“The market continues to price uncertainties,” a trader said.
Wheat prices were also supported by strong U.S. markets , traders said.
Harvesting was advancing at a fast pace in France but some storms were forecast for Friday and Saturday.
The market is expecting a good quality crop at around 35 million-36 million tonnes this year, down between 5 and 10pc from last year.
That is well above the 33.2 million tonnes forecast issued by consultancy Strategie Grains at the end of June.
“If France does harvest between 35 and 36 million tonnes the market will have to fall to grab market shares,” a trader said.