EU Wheat Edges Higher in Wake of U.S. Futures, Weak Euro

European wheat futures rose slightly on Monday, supported by a slight rise in Chicago wheat, healthy export prospects and tightening global supply, traders said.

• Volumes were low, however, due to a lack of new information on fundamentals, they added.
• "Ending stocks before the new harvest should be very tight, mainly in the eight biggest exporting countries, which points to a limited potential for a fall," French analyst Agritel said in its weekly newsletter.
• The world's largest wheat exporting countries are traditionally the United States, Canada, Australia, France, Argentina, Russia, Ukraine and Kazakhstan. 
• The fall of the euro against the dollar, on uncertainty over whether Greece can agree to a deal on austerity and with no sign of when Spain might request aid, provided support by potentially helping EU grain exports. 
• Exports continued at a good pace out of top exporter France, with port data showed a continued flow of wheat towards top client Algeria. 
• Traders also noted some support from lower quality wheat expected in South America. 
• Heavy rains in southern Brazil threatened wheat output, and top-producing state Rio Grande do Sul could lose around a third of its crop just before harvest, a local official said.
• The weekly U.S. crop progress report, normally released on Monday afternoons, will be delayed as the federal government closes down ahead of Hurricane Sandy, the Department of Agriculture said, adding the rescheduled release time would be announced as soon as offices reopen.
• The maize market was supported by rather disappointing results from the harvest, mainly in southwestern France.
• "Overall, we peg the French crop at only 14.7 million tons, below the 15 million tons previously hoped for," one trader said.
• The French farm minister last forecast the grain maize harvest at 15.1 million tons.

More global agriculture market forecasts and data available here.