Reuters report that European milling wheat futures jumped on Wednesday, echoing the Chicago market, on concerns about frost that could damage crops in Argentina and expectations of strong demand from China.

Frosts in Argentina are threatening the current wheat crop and meteorologists are warning of further cold weather on the way. There is also some doubt about Argentina issuing export permits any time soon as they try to maintian domestic food prices.

China is expected to import more wheat due to the poor quality of their own grain. Wheat prices in China reached record peaks recently. This has increased expectations that China will look to import more wheat to replace domestic stocks and curb domestic price increases.

Meanwhile wet weather at the start of the harvest in Brazil could lead to quality problems for this crop. Rain is also hampering winter wheat sowings in Russia. Elsewhere drought is raising concerns about the Australian crop in the northwest wheat belt.