June 17, 2019 / 4:35 PM / a month ago

Paris wheat futures pushed up by strong U.S. markets

HAMBURG (Reuters) - Paris wheat was pushed up by a rise in Chicago wheat on Monday, hitting its highest in almost two weeks before paring some gains.

Front month September milling wheat on the Paris-based Euronext exchange was up 1.1% or 2 euros at 182.75 euros ($205.2) a tonne at 1617 GMT. The contract touched 183.75 euros in earlier trade, its highest since June 4.

Paris prices lost earlier strength as Chicago wheat also gave up some gains.

Cash premiums for wheat delivered to French ports were little changed due to forecasts of large crops and a lack of international buyers.

However, strong U.S. wheat prices could lead private Mexican millers to buy French wheat, traders said.

“In terms of price it (French wheat) is competitive. The question is whether the quality sought will be there,” one said.

The Euronext market was weighing the competitiveness of Russian wheat which could hit French exports against high prices for U.S. corn which could lead to significant new demand for wheat to be used in animal feed, a Euronext trader added.

In Germany, yet more rain over the weekend improved harvest prospects.

Standard bread wheat with 12% protein for September onwards delivery in Hamburg was offered for sale unchanged at 2 euros under Paris December. Buyers were seeking at least 5 euros under against 4 euros under on Friday.

“Large volumes of rain fell in Germany in the last week over the weekend and we now look set for a good harvest in tonnage terms with fears of new drought damage a thing of the past,” one German trader said.

“A mixture of sunshine and showers is also forecast for coming days. The debate is now turning to the quality of the upcoming crop in Germany, especially the protein content.”

“But export prospects after the harvest this summer look poor as other rivals in the Baltic Sea region are also facing a much better crop than last year.”

Rival exporters such as Lithuania and Poland continue to offer lower prices for new crop wheat for delivery from August, especially for wheat grades with higher protein content, he said.

Reporting by Michael Hogan and Valerie Parent, editing by Ed Osmond

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