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EU wheat climbs with Chicago as crop weather dominates

PARIS - European wheat futures rose on Friday to a one-week high, buoyed by a rebound in U.S. prices and ongoing concerns about harvest prospects in France as crop weather continued to sway grain markets.

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An aerial view shows a French farmer in his tractor making bales of straw after wheat harvest in his field in Coquelles near Calais, northern France. REUTERS/Pascal Rossignol/File Photo

PARIS - European wheat futures rose on Friday to a one-week high, buoyed by a rebound in U.S. prices and ongoing concerns about harvest prospects in France as crop weather continued to sway grain markets.

Benchmark December milling wheat on Paris-based Euronext settled 3.25 euros, or 2 percent, higher at 163.25 euros a metric ton, after touching its highest since June 29 at 164.00 euros just before the close.

Over the week, it posted a 3.5 percent gain as it recovered from a contract low of 156.50 euros the previous week.

Chicago wheat, corn and soybean futures rose more than 2 percent during U.S. trading, clawing back some of the losses this week that were fuelled by rain relief for corn and soy crops and strong yields in the U.S. winter wheat harvest.

The bounce in Chicago was also encouraged by forecasts for high temperatures the week after next, which could stress soybeans and particularly corn crops, traders said.

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Doubts over the French harvest, which analysts expect to show a sharp fall in yields and potentially some poor quality readings, continued to underpin Euronext prices.

The condition of wheat crops in France worsened again last week just as harvesting was getting under way, data from farm office FranceAgriMer showed on Friday.

At the European Union level, the European Commission trimmed its forecast for the EU soft wheat harvest, but said the bloc remained on course for an above-average crop as strong prospects in southern and eastern states should offset weather problems in countries such as France. 

Related Topics: CROPSWHEAT
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