HAMBURG: Euronext wheat rose to its highest in around two-years on Monday as dry weather in several wheat exporting countries fuelled a rally in international prices.
December milling wheat, the most active contract on he Paris-based Euronext, unofficially closed up 1.4% or 3.0 euros at 212.00 euros ($249.80) a tonne, a new contract high and the highest spot price since August 2018.
Chicago wheat set another near six-year high while Russian prices also extended gains.
A late wheat purchase tender from Algeria, France's largest wheat customer, also added support.
"Wheat is in a genuine spiral, with bullish factors that have been developing in the past three months feeding off each other," consultancy Agritel said.
"Sooner or later investment funds will switch to selling but for the moment their buying momentum remains intact."
In addition to risks to wheat crops from dryness in Russia, the United States and Argentina, the market was also drawing support from steady international demand and growing concerns about maize supply, traders said.
Monday's Euronext session started late due to a general outage affecting all of the exchange's cash and derivatives markets.
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