HAMBURG: European wheat futures in Paris rose on Monday, lifted by a sharp increase in US wheat futures in Chicago supported by expectations that China would buy more US farm products.
September milling wheat on the Paris-based Euronext exchange rose 1percent to 212 euros (USD247) a metric ton at 1404 GMT, recovering from sharp losses seen on Friday.
Chicago wheat rose 3.6percent on Monday after the White House said China had committed to buying at least USD17 billion of US agricultural products in the next three years.
“Euronext wheat erased Friday’s losses, supported by a surge in US wheat futures, especially Chicago wheat, after fresh details from US and Chinese leaders suggested funds may have been too quick to sell grains off last week,” said Donatas Jankauskas, analyst at CM Navigator.
“A reported USD17 billion additional Chinese agricultural commitment could extend beyond soybeans to other grains such as wheat and corn, helping restore some risk premium across the complex.”
However, Euronext is not following US futures one-for-one, Jankauskas said. “If Chinese purchases from the US materialise, they would not necessarily create new global demand, but rather shift demand away from other suppliers.”
The weather remains mostly favourable in the EU, with French wheat ratings well above average and the Baltics now receiving much-needed rains as well, he added.
Meanwhile, high US domestic wheat prices were generating sales of Polish wheat to US buyers, traders said. This follows previous US purchases of Polish wheat from the 2026 new crop reported in April. The latest purchases were estimated at between 120,000 and 200,000 metric tons. One trader estimated as much as 350,000 tons.
“This is welcome new export business for the EU, and if US domestic prices remain high, we could see more sales,” a German trader said.
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