PARIS: European wheat rose on Friday on concerns about availability on the world market with lower than expected supplies in the European Union and Canada and uncertainty on export policies in the Black Sea region.
Benchmark December milling wheat on Paris-based Euronext, settled up 1.9 percent at 205.50 euros a tonne.
European wheat gained 2.75 euros this week and 1.25 euros over the whole month of August which was marked by volatility with prices moving in a 198.00 to 219.25 euro a tonne range.
The low euro against the dollar which remains below the $1.17 resistance, is also supportive for European wheat, making it more competitive on the world markets.
The European Commission on Friday slashed by 5 million tonnes its estimate for this season’s common wheat exports outside the European Union to 20 million tonnes, down from 25.5 million last month and now lower than the 21.3 million exported last season.
The Commission, which does not comment on its data, also cut its estimate of EU common wheat output to 128.8 million tonnes from the 133.5 million estimated in July and 142.0 million harvested last year.
European wheat crops have suffered scorching weather this season, particularly in the north, with Germany losing nearly 20 percent of its crop due to drought.
As in Europe, the Black Sea region and Australia, hot and dry weather was expected to curb yields in Canada although patchy rains left crops in better shape in some areas.
A Statistics Canada (StatsCan) report on Friday pegged the all-wheat harvest at 29 million tonnes, down 3 percent from last year and short of the average trade expectation of 30.6 million tonnes.
Source: Brecorder
