Euronext Wheat Futures rose on Thursday, boosted by weather concerns for planting. However, they fell from their previous one-week high amid signs of stiff competition in exports.

The December wheat price on Paris' Euronext rose 0.3% to 221.25 Euros ($247.18) per metric ton.

The contract rose earlier to its highest level in more than a week, 223,75 euros, before paring gains when Chicago wheat began to fall.

The concern over the drought in the Black Sea area has been heightened this week after a report from Sovecon revealed that winter wheat planting progress in Russia had fallen to a record low.

In parts of Europe, heavy rains are also beginning to cause doubts regarding sowing conditions.

The forecast of rain in western Ukraine has tempered concerns about Black Sea sowing, while the lower than expected weekly U.S. export sales of wheat have brought attention to competition from cheaper Black Sea products.

The grain markets will also be looking for further guidance from the quarterly U.S. stock estimates that are due on Monday.

In a recent note, ADM Agriculture, a British merchant, said that while the global markets had seen some support emerge on occasion in Europe prices were still being pressured by exports from the Black Sea with aggressively-priced products.

The price of 12.5% Russian wheat for October shipment was around $211 to $214 per ton FOB, while 11.5% Russian was about $215-218.

One German trader commented: "There's a bit of a contradiction on the market, with Euronext increasing despite Russian exports being sent out in large quantities and Russian export prices staying at low levels in this week."

The possibility of late-season demand was raised by the talk that Russia could impose export quotas in February, just as it did in previous years.

Any Russian export quotas will also give hope to better EU wheat sales in the first half 2025. ($1 = $0.8951 euros) Reporting by Gumpiz and Hogan, Hamburg. Editing by David Evans.

(source: Reuters)