The benchmark wheat futures traded on Euronext finished slightly higher on Tuesday, after a three day fall. Chicago recovered and traders assessed the impact of Russian government intervention on Black Sea wheat competition.

December wheat, which was the most actively traded position on Paris' Euronext, closed 0.1% higher at 223.75 euro ($241.02) per metric ton.

The previous day, it fell to 221,00 euros. This was its lowest level since October 1, and a little below the three-week old low.

It also benefited from a weaker Euro and a rebound in Chicago Wheat.

Euronext's deferred positions closed slightly lower.

One German trader stated that the market was looking to see if the Russian minimum export price of $245 or $250 per ton FOB would be followed, or if it will be evaded.

Most published price lists hold at this level, but realistic levels of the market are around $234-$238.

According to traders, Russian wheat prices remained lower than those of western Europe, whereas Ukrainian prices were also lower.

Weather concerns have also been eased, as parched Black Sea wheat belts, Argentinean and U.S. Wheat Belts received some rain while soggy western Europe fields were set for a drier month's end.

A German analyst has said that repeated rains in Germany over the past few weeks have disrupted winter wheat and rapeseed plantings, but this is not a serious problem.

The analyst stated that "it's an inconvenience and some areas are visible which have not been sown yet with wheat."

There is still plenty of time to catch-up. I believe Germany could sow as much as 2.8 million hectares this fall.

The wheat area in Germany for the summer crop was reduced by rain to 2.6 million ha.

Euronext published data on Wednesday showing that financial investors have increased their net short positions in Euronext Wheat. Reporting by Gus Trompiz and Michael Hogan, in Paris; editing by Maju Sam and Vijay Kishore.

(source: Reuters)