European and UK wheat prices have risen in the wake of US grain market fears that hot, dry weather in parts of the US Midwest could mean a drop in soybean production. The late sown US soybean crop is seen as particularly vulnerable to high temperatures over the coming weeks. November milling wheat on the Paris Euronext market rose 3.25 euros or 1.75 percent to 188.75 euros ($250) a tonne after reaching 189.25 euros, a price not seen since August 1.

"We are in a weather market. Cereals are being pulled by soybeans, now in a critical phase," a European trader told Reuters.

In Europe, dry and hot weather conditions in central Europe have affected maize crop growth in the region, prompting the European Commission's crop monitoring unit (MARS) to lower its average yield estimate in the 28-member bloc on Monday. The MARS bulletin shows that on balance, the EU-28 outlook for cereals remains favourable and well above both last year’s levels and the 5-year average, and largely confirms the forecast of July.

The forecast for soft wheat is revised slightly upwards as compared to last month’s figures, mainly thanks to higher forecast yields for the Czech Republic, Bulgaria, Romania and Austria. The forecasts for durum wheat, barley and rye remain practically unaltered. The forecast for triticale was revised slightly upward.

Rapeseed yield estimates for the EU-28 are also revised slightly upward, mainly thanks to good performance in Poland and Romania. The forecast for maize was reduced, however, mainly due to a strong downward revision for Hungary, the EU's third largest grain maize producer. The forecasts for the other main spring and summer crops: sunflower, sugar beet and potato, are also (yet slightly) reduced at EU-28 level.