PARIS, Nov 6 (Reuters) - Euronext wheat futures rose on Wednesday for a second straight session, buoyed by positive export prospects and a firmer trend in Chicago.
December milling wheat, the most active position on the Paris-based Euronext exchange, was up 0.75 euro, or 0.4%, at 178.50 euros ($197.65) per tonne at 1708 GMT.
It earlier climbed to a one-week high of 179.25 euros as it continued to pull away from Monday’s four-week low of 176.50 euros.
The sale of 120,000 tonnes of French wheat to Egypt in an import tender on Tuesday underscored competitive prices in France after a recent rally in the Black Sea export region.
“French exporters are in the driving seat,” one futures dealer said.
Favourable export prospects continued to underpin physical premiums at French ports, brokers said.
The European Commission increased its forecast of EU common wheat exports this season to 26 million tonnes from 25.5 million seen a month ago, although it raised its production estimate by more.
Chicago futures also rose for a second day as investors adjusted positions before U.S. government crop forecasts on Friday and as analysts continued to point to deteriorating harvest prospects in Australia.
However, gains on Euronext were capped by expectations that western Europe still faced a challenge to clear a hefty harvest surplus, with the sale of Russian wheat in Egypt’s tender suggesting a possible revival in Russian exports.
“It was disappointing for EU exporters that Russian wheat took part of the Egyptian tender on Tuesday and that such a large volume of Russian wheat was offered in the tender,” a German trader said.
“But EU wheat continues to be offered at lower prices than Russian in export markets despite the drop in Russian prices this week.
In Germany, traders continued to anticipate more export sales.
“Hamburg premiums from sellers are remaining over prices, which continues to show good export prospects and a more active volume of port loadings in Germany,” the trader said.
Standard bread wheat with 12% protein for November delivery in Hamburg was offered for sale unchanged at 0.5 euro over Paris December. Buyers were seeking at least 0.5 euro under Paris.
Weekly Euronext data showed financial investors increased their net long position in the exchange’s wheat derivatives last week.
Monthly Euronext data showed the average daily volume traded on its commodity contracts, led by wheat, reached 59,169 contracts in October. That was up 33.6% from the previous month and 36.6% above the level seen in October last year.
$1 = 0.9031 euros Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; Editing by Susan Fenton