PARIS: European wheat futures climbed more than 3% on Friday to a six-week high, supported by a drop in the euro and renewed concerns about disruption to Black Sea supply, traders said.
May milling wheat on Paris-based Euronext was 3.5% up at 206.75 euros a metric ton by 1721 GMT. It earlier reached 207.25 euros, a price not seen since Feb. 9, as it moved clear of the psychological 200 euro threshold.
War worries were rekindled by Russian attacks on Ukrainian energy infrastructure, Moscow’s declaration that it was in a “state of war” and reported damage to a power line to a Russian-occupied nuclear power plant.
Market talk that a leading Russian grain exporter may be in difficulty added to jitters about crucial Black Sea trade. “The rumour is generating some stress in the market,” one trader said. Market participants were surprised at the strength of Friday’s rally on Euronext and some said different elements including weather likely reflected fuelled a round of short-covering following recent 3-1/2 year lows.
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