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LONDON, July 13 (Reuters) – European wheat prices were higher on Friday as lower crop forecasts in the European Union and the Black Sea region supported the market.
December's milling wheat, the most active position on Euronext in Paris, rose by 2.50 euros, or 1.4%, to 185.75 euros per tonne at 1512 GMT.
Severe weather that has resulted in drought in northern Europe and storms in France will reduce more and more millions of tonnes of wheat from the EU this year, reinforcing the # 39, world supply of cereals.
In France, estimates have been steadily reduced although many market players doubt that the wheat harvest will fall as low as the forecast of 33.2 million tons of analysies from Strategie Grains in late June.
"In terms of returns, market players are expecting a decline, but the production scenario is closer to 35 million tonnes minimum," said a broker. "In terms of wheat quality, there is not much trouble."
Traders have said that the harvest situation could become clearer in the coming days as harvesting accelerates in the main cereal growing areas of northern France.
French farmers had harvested 20 percent of the soft wheat crop before July 9, while ratings fell slightly to 72 percent, from 73 percent the previous week, the office said Friday. FranceAgriMer agriculture.
In Germany, the spot market premiums in Hamburg have changed little, remaining at a high level lately as traders awaited more news of the results of the drought-damaged German harvest and an important call for offers from Saudi Arabia.
The new standard soft wheat crop with 12 percent protein for delivery in September in Hamburg was offered for sale unchanged at € 6 compared with December. Buyers were looking for about 5 euros more.
"The wheat crop is beginning, especially in southern Germany, but farmers are not happy to make new sales of crops before having a better idea of what 's going on. they will reap, "said a German merchant.
"The latest crop estimates were more pessimistic this week and people are wondering if the bad news about the damage from the drought is lower."
The uncertainty of the harvest made difficult the supply of German wheat in a large Saudi Arabian bidder, traditionally a major buyer of Germany, for 595,000 tons of durum wheat closed on Friday .
"I do not think that Germany will be able to get a significant share of the Saudi business because of the poor harvest prospects that have reduced supplies," said another trader. (Report of Nigel Hunt in London, Gus Trompiz and Clément Rouget in Paris and Michael Hogan in Hamburg)
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