HAMBURG/PARIS, March 18 (Reuters) - Euronext wheat futures rose on Monday, supported by a rise in U.S. markets in Chicago as news of Russian strikes against Ukrainian port cities put attention back on war risks to Black Sea grain trade.
May milling wheat, the most active position on Paris-based Euronext, was up 1.1% to 197.25 euros ($214.39) a metric ton at 1650 GMT.
The contract earlier rose to a near one-week high at 198.25 euros, but like last week held below the psychological 200 euro chart threshold.
Paris and Chicago wheat have struck 3-1/2 year lows this month, pressured by cheaper Black Sea supplies and faltering Chinese demand. Traders say large short positions built up by investors make the market liable to short-covering rallies.
"The price move is directly linked to the rebound in Chicago," a futures dealer said. "But it's difficult to know how to trade such geopolitical headlines at the moment."
Sporadic Russian attacks against Ukrainian ports have drawn limited reaction from grain markets in recent months as they have not disrupted large Ukrainian exports through a Black Sea corridor.
However, a backdrop of Ukrainian strikes against Russian oil refineries and Vladimir Putin's re-election as Russia's president created concern about weekend attacks on Ukrainian ports, traders said.
“War risk to Black Sea shipments by Russia and Ukraine has been pushed into the background recently," one German trader said.
“But after the Ukrainian attacks on Russian oil refineries, we are seeing renewed worry about attacks on grain ships and port grain terminals. These are large and must be easy to hit.”
Russian 12.5% protein wheat for April shipment rose $3 on the week to $201 a ton, consultancy IKAR reported.
“Russian prices have risen in the past week which is encouraging news for EU export prospects after weeks of weakness,” the trader said. (Reporting by Michael Hogan and Gus Trompiz Editing by Mark Potter)
