U.K. wheat and rapeseed crops probably will escape damage from recent flooding because young plants are dormant for winter and able to withstand some excess moisture at this point in their development, according to the Agriculture & Horticulture Development Board.
U.S. farmers, the biggest wheat shippers, are poised to lose their advantage over French growers in export markets after the worst Midwest drought in more than a decade wilted grain crops and drove prices to a 10-month high.
French wheat costs are near their highest in three years compared with U.S. grain and the premium is likely to rise as record food prices stoke demand from governments in North Africa seeking to end growing protests.
Wheat rose for a second day in Chicago on speculation dry weather may have hurt crops in France, Germany and the U.K., the largest European producers. Corn and soybeans gained amid planting delays in the U.S.
Russia will have little grain left to export in November and wheat prices already reflect the lack of supply, according to Alexandre Marie, a wheat analyst at Bourges, France-based farm adviser Offre & Demande Agricole.
European Union soft-wheat production is forecast to climb 4.2 percent, grain industry association Coceral said, lifting its outlook on higher estimates for Spain and Black Sea region growers including Romania.
Offre et Demande Agricole, which advises more than 5,000 French farmers on crop sales, plans to open an office in Poland as the company expands its presence in major agricultural producing countries across Europe.