EUROPEAN wheat futures trade higher overnight as weather concerns in the US and Europe became a key support factor in trading.
"April is a typical time of year where weather plays a role in day to day price movements," a London-based broker said.
The technical squeeze in Paris continued in the lead up to May's expiry as those holding short positions were forced to pay up to close positions.
Paris milling wheat futures trade up EUR2.00, or 1.4 per cenr, at 145.50 euros a metric ton, with 5983 lots traded. London November feed wheat traded up 1.50 pounds, or 1.2 per cent, at 122.50 pounds a ton, with 283 lots moved.
Wheat crops in northern France needed more rainfall while rain in Southern France was delaying corn plantings, a Paris-based broker said.
Farmers in Europe continue to withhold grain from the market, but if the weather improves, they will need to sell by June to make room for another large crop, said the broker.
Ukraine and Russia are also suffering from a lack of rain and weather is forecast to remain warm and dry for the next 10 days, according to AgResource's daily report.
"This is raising fear about the development of a dry weather pattern that could harm early small grain yield prospects," the report says.
"Wheat and barley traders will be watching this part of the world closely as the crop begins jointing."
Meanwhile, US Plains spring wheat planting was being delayed by wet weather, with planting well behind average pace for this time of year, brokers said.
Standard-quality wheat prices in the French cash market delivered at Rouen were up 2 euros from Wednesday at 133 euros a ton.
Liffe's Paris June corn traded up 1.75 euros or 1.2 per cent, at 142.00 euros a ton, with 599 lots moved. Paris August rapeseed traded up 1.50 euros, or 0.5 per cent, at 301.50 euros a ton, with 1854 lots traded.
- Sarah McFarlane, Dow Jones
