Euronext wheat futures rise to highest in a week

Euronext wheat futures rose on Wednesday to their highest in more than a week as a sharp rally in Chicago and firm cash prices in France countered pressure from a surging euro. March milling wheat, the most active contract on Paris-based Euronext, settled up 1.00 euro, or 0.6 percent, at 156.50 euros ($193.81) a tonne, its highest level since January 15.
"There's a bit of firmness in French export prices and with Chicago up 10 cents Euronext pushed higher despite the euro," a futures broker said. Chicago wheat added around 2.5 percent as a three-year low for the dollar against the euro and a range of major currencies encouraged buying by investors holding a large short position.
The euro's latest rally underlined a tough export context for western European wheat. But disruption to river transport, due to high water levels following heavy rain this month, had forced some French grain handlers to resort to trucks to reach northern ports, pushing up some spot prices on the physical market, traders said.
News of a latest tender by Algeria, the largest overseas buyer of French wheat, to be held on Thursday also supported the firm trend. French barley prices, meanwhile, continued their recent firm trend due to brisk export demand, and were now quoted higher than wheat.
In Germany, wheat cash premiums in Hamburg were flat as the strong euro dented export prospects. "With export demand modest again today, inland prices especially for feed wheat are providing the main demand driver and are higher than in ports," one German trader said.
"But feed wheat prices are slipping a little as the sugar beet harvest is ending and more trucking capacity is available for wheat transport. Farmers are also making more sales offers."
Standard bread wheat with 12 percent protein content for February delivery in Hamburg was offered for sale unchanged at about 5 euros over Paris March. On the South Oldenburg market, feed wheat for February onwards delivery was offered for sale down 1 euro at 168.50 euros a tonne, with buyers seeking 167.50 euros.