Benchmark European wheat futures edged higher on Friday as a rebound in Chicago helped the market to find a footing after rising global supplies pushed prices to a near two-month low this week. March milling wheat, the most active position on Paris-based Euronext, settled 0.50 euro or 0.3 percent higher at 164.75 euros a tonne.
The contract had touched its lowest in almost two months on Thursday at 163.75 euros. Euronext drew support from a bounce in Chicago wheat, which broke a run of six falling sessions that had taken it to contract lows. "Chicago is back up a little and I think it may have reached a price floor," one futures dealer said.
"On Euronext it was very quiet, with the March futures stabilising around 164 euros and the spread with December widening further." The approaching expiry of spot December futures has led to technical adjustments. After it almost reached parity with March prices last week, the spot contract has since lost ground again.
December futures settled down 0.5 percent at 159.50 euros a tonne. Wheat markets have weakened this week in response to the prospect of big southern hemisphere harvests, including an expected record Australian crop, swelling global supplies. Traders said that Argentine wheat was adding to competition on export markets, with talk of several shipments scheduled for Algeria, a market usually supplied by European Union wheat. In France, farmers were wrapping up soft wheat sowing, with 99 percent of the expected area drilled by November 28, farm office FranceAgriMer said.
Comments
Comments are closed for this article.