GRAINS-EU wheat rises, supported by high Russian prices

PARIS/HAMBURG, July 30 (Reuters) - European wheat edged higher on Wednesday after a big fall in the previous session, supported by strong Russian prices and concerns about Germany's wheat crop.

Benchmark September milling wheat BL2U5 on the Paris-based Euronext closed 0.7% higher at 198.25 euros ($227.37) per metric ton.

"Euronext is not rising because the funds are selling," a trader said, pointing to high Russian prices as supportive.

Russian farmers are starting to sell more of their new crop after an unusually slow start to new harvest sales, but are still demanding high prices as a large number of ships are waiting to load supplies in export ports, traders said.

A cargo is expected in the coming days in the French ports of Rouen and La Pallice to load 63,000 tons of wheat for Egypt GRAIN/SHP/FR.

Egypt's state grain buyer said late June it expected wheat shipments from France and other European countries as it pushed ahead with efforts to bolster the country's strategic reserves and diversify supply sources.

Traders were doubtful that significant volumes of delayed export shipments had been transferred to countries outside Russia to supply.

Repeated rain in Germany and Poland this week has caused last minute quality damage to some wheat ready to be cut and interrupted harvesting work, traders said.

“Some damage has been suffered to German wheat quality,” one German trader said. “Rain almost every day on ripe wheat is about the worst scenario you can expect. But there is still a chance to bring in a decent crop if the weather changes as most German wheat is anyway harvested in August.”

More rain is forecast in much of Germany into early next week.

Poland’s harvest has also been disrupted by rain.

“Heavy rain throughout Poland with only small sunny periods has interrupted harvesting and created much uncertainty among farmers about wheat quality,” one Polish trader said.

“I estimate only 20% of Poland’s wheat has been harvested, with results varying greatly by region. Yields are mostly good in tonnage terms, but farmers talk of low falling numbers (quality criteria) in wheat, which may mean more of Poland’s crop than expected will only reach animal feed standard.