LONDON - European wheat prices mostly rose on Monday with feed demand potentially boosted by a sharp rise in CBOT corn futures while the threat posed by disease to crops in top EU producer France increased with further rains expected during the next few days.
By 1614 GMT, the September contract on the Paris-based Euronext for milling wheat futures was 0.3 percent higher at 169.00 euros per metric ton although well below the day's high of 171.00 euros.
"There are a lot of diseases developing everywhere. It is exploding," a trader said.
Farm office FranceAgriMer cut its wheat crop ratings last week saying the condition of cereal crops in France had worsened as storms and torrential rain affected grain belts.
The situation was not expected to improve in the coming days with Meteo France forecasting rainfall in most of the country until the end of the week. Traders also noted a lack of sunlight, essential for plant development, over the past weeks.
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"This is leading to some covering on the Matif from people who fear they won't find the quality," another trader said.
CBOT corn jumped about 2 percent on hot weather in the U.S. Midwest over the weekend and uncertainty about U.S. crop weather going forward.
Feed wheat futures in London were also higher with November up 0.2 percent at 122.80 pounds.
Dealers said UK prices were also boosted by the weakness of sterling which helped to improve export prospects.
The pound fell to an eight-week low against the euro on Monday in choppy conditions ahead of next week's referendum on European Union membership. (Reporting by Nigel Hunt in London and Valerie Parent in Paris; editing by David Clarke)
