Chicago wheat rose more than 1 percent, supported by a continued rally in soyabean and soyameal futures. "The soyabean market is very, very volatile," one Euronext dealer said. "In Europe, the euro is helping us even if it has steadied today." Grain markets were also looking for clearer direction from monthly world crop estimates from the US Department of Agriculture (USDA) due on Wednesday. The euro, which hit a two-year low against the dollar before rebounding slightly, has contributed to a record pace of European Union exports this season and traders said it could help sustain sales despite a run-up in prices.
In Germany, a long line-up of ships to load German wheat supported export sentiment, traders said, adding however that much of the country's exportable supplies had now been sold. "One 30,000 dead-weight (tonne) ship is currently loading wheat in Germany for Saudi Arabia and four 60,000 dwt ships are scheduled to start loading to various destinations," one said.
German cash wheat premiums in Hamburg were little changed, with the firm trend in Paris in the past week reducing purchasing interest. Standard wheat with 12 percent protein content for delivery in Hamburg in January was offered for sale at a premium of 11 euros over the Paris January contract. Buyers were offering 10 euros over Paris. "Buyers are hoping the USDA report on Wednesday will bring the focus back to large US corn and soyabean harvests," another German trader said.
European prices were also capped by easing worries over Black Sea region supplies, which had fuelled last week's rally. Russia's Veterinary and Phytosanitary Surveillance Service said on Monday it has yet to apply new regulations for grain exports, which it had said last month could lead to a drop in shipments. An outlook for milder temperatures this week in Russia and Ukraine have also eased concerns over crop damage in the two exporting countries.