PARIS: Euronext new-crop wheat futures edged up on Friday, steadying after a day-earlier slide, to post a 10% gain for April that was part of a broad weather-fuelled rally in grains.
September milling wheat on Paris-based Euronext settled up 0.50 euros, or 0.2%, at 219.25 euros ($263.54) tonne.
It had plunged 3.5% on Thursday as rain forecast for dry parts of western Europe eased crop worries and encouraged selling after Tuesday’s life-of-contract high of 233.50 euros.
The September futures nonetheless ended April with a 10% gain.
Traders were watching to see if rain would reach parched grain belts in France, after crop ratings for French wheat and barley fell sharply in the wake of recent dry, cold weather, data from farming agency FranceAgriMer showed.
A sharp fall in the euro, after a two-month high against the dollar on Thursday, helped Euronext prices steady, tempering a lack of export competitiveness for French wheat.
May wheat rose sharply as participants exited positions in the run-up to the contract’s expiry.
It earlier climbed nearly 3% to 258.50 euros, a highest front-month price since December 2012.
“I think markets are now awaiting the expiry of the last Paris old-crop wheat contract on May 10 so that we have an undiluted concentration on the new harvest without distractions,” a German trader said.
German crops were not thought to have been damaged by recent cold.
“This is hardly beneficial for crops, but German wheat and rapeseed is generally about 10 days to a fortnight behind normal growth levels,” the trader said.
“This delayed growth means German crops were less vulnerable to frosts than French wheat in my view.”
Standard 12% protein wheat for September delivery in Hamburg was offered for sale little changed at around 4 euros under Paris December. Buyers were far away, seeking 6 euros under Paris.
In rapeseed, Euronext May futures expired at 601.25 euros a tonne, down 11.7% on the day, after earlier jumping to a new record high for a front-month price at 700.00 euros.
A rally in oilseed and vegetable oil markets, supported by tightening global supply, has exacerbated pre-expiry volatility in rapeseed.
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