European benchmark milling wheat futures have reached a seven-month high on concerns that recent bitterly cold weather in Russia, Ukraine and western European grain producers including France, Germany and Poland may damage harvests, according to reports.
Europe's benchmark wheat, Paris' March contract, reached 221.50 Euros per metric ton in February 1 morning trade, a price last seen in June 2011. March wheat was up 3.00 Euros, or 1.3 percent, at 218.50 Euros per metric ton. Paris new crop for November was 1.6 percent higher, at 199.75 Euros per metric ton. "A sharp freeze across Europe and the Ukraine, further talk of large damage to Ukraine winter wheat yields, lack of snow coverage, the question mark over Russian exports and logistics all continue to dominate market views across Europe and the Black Sea," said Jaime-Nolan Miralles of INTL FCStone Inc.
Wheat futures have pared some of their gains as traders consider the haste of the initial rise, and traders are now awaiting official damage reports from western Europe.