PARIS: Euronext wheat ended flat to slightly higher on Wednesday, after setting a new high since mid-July, as the market awaited fresh direction from US government crop forecasts later this week. Benchmark December milling wheat on the Paris-based Euronext exchange settled unchanged on the day at 188.75 euros ($222.78) a tonne.
It earlier rose to 189.25 euros, its highest since July 16 and slightly above a previous peak of 189 euros touched several times in the past week. However, the contract was again capped by chart resistance around 189 euros, dealers said.
The run-up to Thursday's expiry of front-month September futures on Euronext and Friday's closely followed US Department of Agriculture monthly crop report were encouraging the market to consolidate, they said. Grain markets have been buoyed by brisk Chinese demand for US grain. Wheat traders, meanwhile, have been weighing healthy international demand and strength in Russian prices against improved harvest prospects in other exporting countries like Australia.
Euronext data showed financial investors extended their long position in the exchange's wheat futures and options last week. In Germany, brisk demand continued from British importers following the poor United Kingdom harvest this year.