It earlier reached its highest since Aug. 20 at 171.75 euros as it extended a rebound from last week's life-of-contract low of 165.75 euros. Chicago wheat climbed to a one-month high on the back of short-covering by investment funds and spillover support from soybean prices boosted by goodwill purchases by China ahead of trade talks with Washington.
"It looks like funds are buying back short positions before the weekend," a futures dealer said. "There have also been reduced crop forecasts for Australia and Russia." The US Department of Agriculture's (USDA) monthly world crop report on Thursday included a lower estimate for Australian production, in keeping with a revision this week by Australia's official forecaster, as well as a smaller cut to projected production in Russia, the world's top wheat exporter.
In Germany, weak domestic and export demand curbed prices. "There is a general lack of demand, with German mills seeming to have pretty good supply cover up to the end of 2019 and exports expected to remain at depressed levels as cheap competition from the Baltic Sea region is added to the usual competition from the Black Sea exporters," a German trader said.
Standard bread wheat with 12% protein for September onwards delivery in Hamburg was offered for sale at 2.0 euros under Paris December against 1.5 euro under on Thursday. Buyers were seeking at least 3.0 euros under Paris.
"Low export premiums for panamax and handymax sized vessels are being offered for high protein grades in both the Baltic States and Poland," the trader said.
"They are expected to get the lion's share of the main export sales in coming weeks."
Wheat with 12.5% protein for loading in German ports in October was offered at around 2 euros fob over Paris. Lithuanian 12.5% wheat was offered at 4.5 euros under Paris for October loading in Klaipeda while Polish wheat was offered at 1.5 euros under for loading in Polish ports, traders said.
French traders were awaiting a next import tender by Algeria, the largest overseas of French wheat, amid concern that a recent move by Saudi Arabia to open its tenders to Black Sea origins may be replicated soon by Algeria after recent lobbying by Russia.