December milling wheat on the Paris-based Euronext exchange jumped 4 euros, or 2.3 percent, in early trade to touch its highest level since March 7 at 176.75 euros ($192.7) a tonne. The contract was up 2.00 euros or 1.1 percent at 174.75 euros at 1549 GMT. "The rain (in France) over the weekend has calmed people's nerves," a French broker said. "That said, in the west and the centre of the country where the rain was heaviest, the moisture will be quickly absorbed, while north of Paris and in the east the rain was minimal."
Farming agency FranceAgriMer estimates that 78 percent of soft wheat crops were in good or excellent condition as of April 24, falling sharply from 85 percent a week earlier after recent dryness. Unsettled weather is forecast to continue in France this week and traders will be watchinng to see how much rain falls The grain market in France is also assessing reports of frost damage to barley and rapeseed after unseasonably cold weather in the past two weeks, brokers said.
In Germany, cash market selling premiums in Hamburg were cut as buyers resisted higher outright prices caused by the strength in Paris. Standard wheat with 12 percent protein content for May delivery in Hamburg was offered for sale at 4.5 euros over the Paris May contract, against 6.5 euros over on Friday, the previous trading day. Buyers were seeking 3.5 euros over. "The main market strength is coming out of the strong rise in US prices after the bad weather there over the weekend rather than European factors," one German trader said. "The euro's trend against the dollar remains stubbornly firm which is disappointing for exports."
Copyright Reuters, 2017