Euronext wheat futures rose on Thursday to their highest level in almost two months, supported by a slight recovery in US prices and a favourable export context for French wheat.
December milling wheat, the most active contract on the Paris-based Euronext exchange, settled 1.75 euros, or 1.0%, higher at 176.25 euros ($193.59) a tonne. In late trading the contract touched its highest level since Aug. 6 at 176.50 euros although it remained shy of a chart resistance zone pegged by dealers at 177.50-177.75 euros.
Chicago wheat edged higher during US trading, steadying after a 2% drop on Wednesday. "We've had some positive export news lately," a futures dealer said. "Chicago has also turned a bit higher after yesterday's slide." Paris prices have rallied in the past week, with two-year lows for the euro against the dollar and signs of demand for French wheat boosting export sentiment.
Egypt, the world's largest wheat importer, bought 60,000 tonnes of French wheat in a tender on Wednesday. News that Morocco awarded the entire 576,000 tonnes of soft wheat imports available in a reduced-tariff tender for European Union supplies reinforced expectations of brisk Moroccan demand after a poor local harvest.
However, some French traders remained cautious about export prospects given competition from Black Sea origins like Ukrainian wheat, including in Morocco, and signs of reduced demand from Algeria, the main export outlet for French wheat.
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