HAMBURG: Euronext wheat futures rose on Monday as worsening corn harvest prospects in Brazil continued to support global grain markets, offsetting signs of improved moisture for northern hemisphere wheat.
September milling wheat on the Paris-based Euronext exchange was up 1.25 euros, or 0.5%, at 220.50 euros ($266.03) tonne at 1530 GMT.
It pared earlier gains as the euro rose sharply against the dollar while Chicago corn came off an eight-year high and US wheat futures turned lower.
“The drought situation is persisting and worsening for Brazilian corn,” consultancy Agritel said. “That points to further fundamental tension in corn and wheat in the opening months of the 2021/22 season when normally Brazilian corn rules the market.”
Traders were watching to see if rain forecast this week would reach parched French grain belts.
May wheat remained volatile in the run-up to its expiry next week. It earlier climbed to 261.75 euros, highest front-month price since December 2012, before edging lower.
Traders noted that a vessel of Romanian wheat was unloading at Dunkirk, an unusually large import thought to be for physical delivery against May futures. The cargo was for 33,000 tonnes, less than the 45,000 tonnes initially estimated by traders.
Euronext August rapeseed hit a new life of contract high of 517.25 euros before paring gains, as tight supplies continued to underpin.
In Germany, buyers and sellers were far apart in the Hamburg market as new crop prospects were assessed.
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