Dealers noted commodity markets began to recover on Monday after falling last week on growing economic concerns linked to euro zone sovereign debt.

The USDA monthly report is due to be issued on Tuesday.

The Reuters-Jefferies CRB index, which tracks 19 mostly U.S. traded commodity futures, stood 3.39 points or 1.31 percent higher at 261.94 points at 1712 GMT.

Traders said French milling wheat futures should remain rangebound in the coming days, barring a major surprise in the market.

“Without a numerical incident in the USDA report or a weather incident somewhere in the world, the March contract should continue trading in a narrow range,” one Euronext dealer said.

The March contract was up 0.50 euros or 0.40 percent at 125.50 euros a tonne and expected to remain between support at 124.50 euros and resistance at 127 euros.

Euronext continued to find some export relief in the recent weakness of the euro at a time of ample supplies and stiff competition from Black Sea origins.

“The fall in the euro has given back a bit of competitiveness to European grains,” the dealer said.

The French market will also be watching this week for monthly supply and demand data from farm office FranceAgriMer, and expectations of a rise in projected maize stocks was helping keep a lid on grain prices, traders said.

Large stocks

Feed wheat futures in London were mostly steady with March up a marginal 0.05 pounds at 97.50 pounds a tonne.

Dealers said the market derived some support from slow farmer sales but fundamentals remained bearish with large stocks overhanging the market.

Germany’s market was little changed, with a lack of impulse from Paris and sluggish exports depressing sentiment.

Standard bread quality wheat for February delivery in Hamburg was offered for sale unchanged at 129 euros a tonne with buyers at 128 euros.

“Paris was hardly moved by late afternoon while people were also waiting to see whether U.S. prices would shake off the recent weakness,” one trader said.

“Canada was believed to have won most of the Iraq tender last week despite earlier reports of a wide spread of purchases.”

Several German canals and rivers remained blocked by ice as cold weather continued.