Euronext wheat futures edged higher on Friday in thin pre-holiday trade with an easing in the euro and overnight gains in Chicago encouraging the market to hold chart support. March milling wheat, the most active contract on the Paris-based Euronext exchange, was up 0.25 euro, or 0.2 percent, at 160.50 euros ($189.95) a tonne at 1615 GMT.
Volumes were light with many market participants heading off for year-end holidays and limited newsflow failing to give fresh impetus. Euronext will be closed on Monday and Tuesday.
The Euronext benchmark continued to hold the chart support level of 160 euros that has underpinned prices this month in the face of pressure from sluggish exports and high global supplies. "If we end up breaking chart support, Euronext could fall a fair way," Michel Portier, head of consultancy Agritel, said.
"EU exports are running behind and the danger for us next year is if the euro keeps climbing to say $1.25 to $1.30." A stronger euro this week maintained negative sentiment on the western European wheat market, although it eased against the dollar on Friday.
A two-week high for Chicago wheat on Thursday, linked to a pick-up in US exports and cold weather risks for US crops, lent some support to Euronext, although Chicago prices edged back down on Friday.
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