November 25, 2019 / 6:06 PM / 7 months ago

Paris wheat hits 4-week top as global weather risks spark Chicago rally

PARIS, Nov 25 (Reuters) - Euronext wheat futures climbed on Monday to their highest in almost four weeks, tracking a rally in Chicago as weather risks to the northern hemisphere sowing season stirred markets.

March milling wheat, the most active contract on Paris-based Euronext, provisionally closed 2.25 euros or 1.2% up at 183.25 euros ($201.98) a tonne, its highest since Oct. 29.

Chicago wheat rose more sharply, adding around 2.5%, as concerns grew over adverse crop conditions in U.S. grain belts and other parts of the world.

“There’s some poor weather forecast in the United States and with Thanksgiving on Thursday there’s short-covering going on,” a futures dealer said.

U.S. traders were waiting to see if a weekly crop report later on Monday would show another decline in ratings for wheat.

In Europe, soggy conditions have been hampering the sowing campaign, while in the Black Sea region dry weather was raising concern about Ukrainian and Russian sowings.

Heavy rain was expected to reduce the overall winter cereal area for next year in parts of northwest Europe including Britain, and lower the soft wheat area in France, the European Union’s crop monitoring unit said on Monday.

EU soft wheat exports so far in the 2019/20 season have reached 10.8 million tonnes, up 59% compared with a year earlier, weekly official data showed.

In Germany, standard bread wheat with 12% protein for January delivery in Hamburg was offered for sale unchanged at 3.0 euros over the Paris March contract. Buyers were offering around 1.0 euro over Paris.

“There has been good demand for German wheat from Africa this month with a ship sailing last week for Guinea with about 25,000 tonnes in the past days following shipments earlier this month to Kenya and Morocco,” one trader said.

In Poland, prices were little changed in the last week, holding firm at recent high levels on demand expectations.

Exporters were offering to buy Polish 12.5% protein wheat at an unchanged 760 zloty a tonne (176.8 euros) for December delivery to delivered port silos.

“Currently Polish FOB export prices are lower than the offers from the Baltic States, which is making Polish milling wheat look competitive on world markets,” a Polish trader said.

Polish millers were offering to pay an unchanged 670-730 zloty a tonne depending on the region for 125% protein wheat for December delivery.

“Flour mills seem not to have full supply cover for wheat up to the end of December and for the beginning of January,” the trader said.

$1 = 0.9073 euros Reporting by Gus Trompiz in Paris and Michael Hogan in Hamburg; editing by David Evans

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