PARIS: Euronext wheat futures rose for a third straight session on Monday to their highest since July as signs of Chinese demand fuelled a rally in Chicago while technical adjustments again boosted spot prices in Paris.
December milling wheat, the most active contract on the Paris-based Euronext exchange, settled up 2.25 euros, or 1.3%, at 182.50 euros ($216.54) a tonne, its highest since July 31.
Front-month September futures settled 4.00 euros up at 184.75 euros, just off an earlier three-week peak of 185.00 euros.
The expiry on Monday of options against September futures fuelled moves in the spot contract, dealers said.
Paris prices also drew strength from sharp gains for US wheat, supported in turn by A rally in US corn and expectations of growing Chinese demand.
The US Department of Agriculture reported the sale of 130,000 tonnes of US hard red winter wheat to an unknown destination, which some traders saw as a possible export deal to China following a flurry of recent corn and soybean sales.
"It's Chicago above all that's driving us higher, with this Chinese import appetite supporting the US market," a futures dealer said.
"Other market factors are not really bullish," he said, noting a latest increase to an analyst forecast for Russia's wheat harvest. European traders were awaiting the outcome of a tender called by Algeria for Tuesday, with main supplier France expected to see strong competition from other European Union origins following a poor French harvest this summer.
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