PARIS: Euronext spot wheat futures rose for a second day on Friday to reach a two-week high, supported by a rebound in Chicago and technical buying at the end of the session. Front-month September milling wheat on the Paris-based Euronext exchange settled 2.50 euros, or 1.4%, higher at 180.75 euros ($213.86) a tonne.
In a late flurry, which dealers said was fuelled by trading of spreads and options, the contract climbed to its highest since July 31 at 182.50 euros. At the start of the week the Paris spot contract had slipped to its lowest since the end of June, pressured by rising expectations for harvests in Russia and some other exporting countries, which shifted the focus away from a very poor French harvest.
Chicago wheat, the global benchmark, then rebounded from Thursday, buoyed by a rally in corn. Heavy buying of Russian wheat by Egypt and dry conditions for developing Argentine wheat crops also helped wheat markets to steady, traders said.
In France, farmers finished off soft wheat harvesting in the week to Aug. 10, farm office FranceAgriMer said. In Germany, the work on the final wheat fields to be harvested is expected to be complete in the next couple of days.
Germany's harvest is forecast to be smaller than last year but show a much smaller decline than in France. "The main problem is the big harvests in Russia and the Baltic States and the low prices they are currently offering in export markets. Germany cannot expect big sales in coming months," one German trader said.
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