PARIS: Euronext wheat climbed 4% on Thursday, rebounding with Chicago futures from four-month lows as investors’ recession fears eased and export news underscored strong early-season demand for European wheat. September milling wheat on Paris-based Euronext settled up 4.1% at 338.75 euros ($343.87) a tonne.
The contract had fallen on Wednesday to 322.00 euros, the weakest front-month price since Feb. 28. Chicago wheat also added around 4%. The wheat market continued to wrestle with economic sentiment driving investment flows and an uncertain supply outlook as war in Ukraine disrupts huge Black Sea grain trade.
“There’s a moment in a slide when the selling interest dries up,” a futures dealer said. “We’ve also seen some fresh export demand.” News that Egypt’s state grains buyer General Authority for Supply Commodities (GASC) purchased about 63,000 tonnes of German wheat in a direct deal this week, as reported by sources on Thursday, underscored demand for European Union wheat. “The Egyptian sale is not very big but the hope is that it could signal more interest in German wheat by GASC,” one German trader said.
German old-crop export shipments were winding up before the arrival of the new crop starting later in July, with shipments from German ports leaving this week including 35,000 tonnes for Mauritania and 14,000 tonnes for Morocco.
In France, around 100,000 tonnes of wheat is expected to load for Morocco at the west coast port of La Pallice in the coming week, in a further sign of large Moroccan import needs following a drought-hit harvest, traders said.
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