Euronext wheat futures rose to their highest in more than four months on Friday as a sharp rally during post-holiday trading in Chicago added to support from firm physical markets in Europe.
March milling wheat, the most active contract on Paris-based Euronext, settled 2.00 euros, or 1.1%, higher at 185.75 euros ($204.73) a tonne.
In late trading it reached 186.00 euros, a level last touched on July 15, having earlier breached the chart resistance at 185 euros that had capped gains in Paris earlier in the week.
Chicago wheat rose around 3% as trading resumed on the US market following a closure for Thursday's Thanksgiving holiday.
Wintry weather in the United States, a lack of initial deliveries against spot futures and rising prices in top exporter Russia supported US grain futures in a shortened post-Thanksgiving session that was also the final trading day of the month.
Paris futures again drew support from firm physical premiums in France, reflecting slow selling by farmers, steady export demand and concern about rain disruption to sowing.
"Physical premiums continue to be firm. People are a bit worried about the next harvest and there is a lack of selling as farmers' minds are elsewhere," a grain broker said.
"Matif (Euronext) also remains among the cheapest wheat in the world as long as Russian prices keep rising. The euro at $1.10 is also helping our competitiveness."
Heavy autumn rain is expected to lead to a fall in wheat sowings in France and Britain, raising early doubts over prospects for next year's harvest in Europe, analysts said.
In France, farmers had sown 80% of the expected area of soft wheat for next year's harvest by Nov. 25, up from 74% a week earlier, with sowing running a week behind the usual pace, farm office FranceAgriMer said on Friday.
Wheat ratings also declined sharply for the second week in a row, with 75% of crops rated good or excellent against 78% the prior week.
Projected EU soft wheat exports in 2019/20 were kept at 26 million tonnes.
Comments
Comments are closed for this article.