EU wheat at 2-week high tracking Chicago, lower euro supports
PARIS, Nov 18 (Reuters) -European wheat prices extended their rise on Monday to hit a two-week high, supported by a strong rebound in Chicago after sharp losses last week and a weak euro making euro-denominated goods more competitive on world markets.
Benchmark December milling wheat BL2Z4 on Paris-based Euronext, was 0.7% higher by 1625 GMT to 217.75 euros ($230.12) a metric ton, after rising to 219.00 euros earlier in the session, the highest since Nov. 4.
By the same time, most-traded wheat Wv1 on the Chicago Board of Trade was up 2.3% at $5.48-3/4 a bushel.
"The weaker euro would give EU wheat a greater chance of winning upcoming international wheat purchase tenders with Russian wheat having to struggle against the government's unofficial minimum export price," one German trader said.
Although Russian wheat export prices have been dropping in the last week, there is market talk that perhaps Russian prices are now reaching their lowest level.
"Unfortunately, demand is very thin this week with hardly any new tenders in the market," the trader said.
But traders stressed Russian wheat exports are still running at high levels, while new crop supplies from Argentina and Australia could provide competition to EU exports in the final weeks of this year.
Farmers staged protests across France on Monday at the prospect of a trade deal between the European Union and South America's Mercosur bloc, which will further intensify competition for the French agriculture sector.
($1 = 0.9463 euros)
Reporting by Sybille de La Hamaide in Paris and Michael Hogan in Hamburg; editing by David Evans
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