PARIS: European wheat rose on Tuesday tracking US futures in Chicago and buoyed by wider gains in financial markets following China’s decision to ease some quarantine requirements for international arrivals that raised hopes for stronger growth.
Benchmark September milling wheat on Paris-based Euronext, gained 1.5% by 1543 GMT to 355.25 euros a tonne after hitting 360.25 euros a tonne in earlier trade. It had fallen to a three-month low in the previous session.
Most traded wheat in Chicago was up 1.6% at $9.32 per bushel by the same time, also supported by lower than expected ratings for US crops.
In a report released after Monday’s market close, the US Department of Agriculture (USDA) cut its rating of the country’s corn crop in good-to-excellent shape to 67%, down 3 percentage points from a week ago, and lowered the soybean crop good/excellent score by 3 points to 65%.
In the short term, doubts remained about the feasibility of moving large volumes of grains trapped in Ukraine by the end of July given little progress in implementing EU and US initiatives to ease logistics problems in the war-hit country.
“A deal overcoming all logistical and financial challenges to export grains out of Ukraine will be hard to find, if ever,” a trader said.
Some 20 million tons of grain have to leave the country which was invaded by Russia by the end of next month to make room for this year’s crops and avoid food shortages in Africa, the European Commission said last month.
French President Emmanuel Macron said after a meeting of Group of Seven leaders that UN talks with Russia, Ukraine and Turkey to open up a sea route from Odesa were ongoing.
Traders said a wheat purchase by Algeria’s state grains agency OAIC in an import tender last week totalled about 740,000 tonnes, more than previously estimated.
The North African country, one of the world’s largest wheat buyers, is holding a new tender on Wednesday.
Comments
Comments are closed for this article.