PARIS: Euronext wheat futures rallied on Tuesday to hit the 200 euro mark as dry weather in several exporting countries fuelled a broad rally in grain markets.
December milling wheat, the most active contract on the Paris-based Euronext exchange, settled 2.25 euros, or 1.1%, up at 200 euros ($235.54) a tonne.
It earlier climbed to 201 euros, a new life-of-contract high and the highest spot price in nearly five months.
Dry sowing conditions in Russia and the US Plains again supported a sharp rise in Russian and US wheat futures.
However, some traders said the rise on Euronext looked overdone, given a firm euro-dollar trend and growing expectations that Algeria - the biggest overseas market for European Union wheat - would not hold a November wheat import tender.
Rain in western Europe has also improved the sowing outlook after summer drought.
But the price rise in Russia and the Baltic states was boosting export prospects in Germany and Poland.
“Polish wheat is looking competitive on international markets compared with the Baltic states and Black Sea wheat,” one Polish trader said.
“It looks like the cheap prices offered recently from the Baltic States are starting to fade and we expect even more export interest in Polish wheat in the second half of this grain season.”
Polish export prices for 12.5% protein wheat rose about 10 zloty in the past week to around 845 zloty (187.80 euros) a tonne for October delivery to port silos, supported by export demand and the international price rally.—Reuters
Comments
Comments are closed for this article.